Sinopec Refinery Decision Expected Soon as Sri Lanka Awaits Final Response

Sri Lanka is nearing a final decision on the long-delayed Sinopec oil refinery project, with the Government expecting an official response from the Chinese energy giant within days, BOI Chairman Arjuna Herath said. The US$3.7 billion refinery, planned near the Hambantota International Port, would become the country’s largest single foreign investment if approved.

Negotiations have centred on aligning Sinopec’s updated proposal with the original tender conditions, which require the project to operate strictly as an export-oriented refinery. While Sinopec sought limited domestic market access due to global energy shifts, the Government has declined to modify the tender’s terms.

The move comes as Sri Lanka struggles with severe natural-disaster losses and rising reconstruction costs. Officials argue, however, that major export-driven investments are vital for boosting foreign reserves and meeting IMF stabilisation goals. The agreement will be submitted to the Cabinet once Sinopec confirms its position.

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