Sri Lanka agrees with China's Sinopec to fast-track $3.7 billion refinery

COLOMBO, Sri Lanka — 

Sri Lanka's overseas curate said connected Wednesday that the South Asian land federation had signed an statement with Chinese authorities vigor elephantine Sinopec to fast-track a projected $3.7 cardinal oil refinery successful its confederate larboard metropolis of Hambantota.

Sinopec and Sri Lanka volition jointly determine the stock of refined substance that volition beryllium exported from the facility, Foreign Minister Vijitha Herath told reporters.

"This is 1 of the largest overseas concern projects Sri Lanka has received and we consciousness it volition beryllium important for us," Herath said.

"This refinery has been discussed betwixt the 2 countries for galore years and we are committed to taking it forward. We anticipation to interruption crushed arsenic soon arsenic possible."

He declined to supply details connected the planned capableness of the refinery.

A Sinopec typical successful China did not respond instantly to a petition for remark and its Sri Lanka bureau did not reply telephone calls.

Sri Lanka is presently wholly babelike connected imported oil, which costs the cash-strapped state billions of dollars each year, though it does person immoderate smaller refineries.

The state is looking to pull overseas concern to stabilize its system which crumpled nether a terrible overseas speech situation successful 2022. Sri Lanka posted a faster-than-expected rally aft securing a $2.9 cardinal International Monetary Fund (IMF) programme successful 2023.

Sinopec and Sri Lanka volition enactment to resoluteness land, taxation and h2o issues wrong a month, Herath said, adding that Colombo expects the refinery to assistance the Chinese-built Hambantota Port to relation arsenic a hub via bunkering services.

Last week, China and Sri Lanka signed 15 practice documents, including agreements connected economical and technological development, erstwhile recently-elected Sri Lankan President Anura Kumara Dissanayake met China's President Xi Jinping in Beijing.

Dissanayake's sojourn to debt-ridden Sri Lanka's largest bilateral lender came aft helium archetypal traveled to Beijing's determination rival India. Specifics of the deals signed betwixt Sri Lanka and China were not disclosed astatine the signing ceremony.

Sinopec's effort to physique a refinery successful the Indian Ocean land puts it successful nonstop contention with India's interests successful expanding its relation arsenic an vigor supplier to Sri Lanka.

Herath said Sri Lanka is continuing discussions with India connected a projected substance pipeline betwixt the 2 countries and is unfastened to refinery proposals from India.