The South Asian island nation of Sri Lanka announced Wednesday that it has reached a deal with Sinopec, the Chinese state energy behemoth, to expedite the construction of a proposed $3.7 billion oil refinery in Hambantota, its southern port city.
Foreign Minister Vijitha Herath informed reporters that Sinopec and Sri Lanka will work together to determine the proportion of refined fuel exported from the plant. We believe it will be significant for us, and this is one of the biggest foreign investment projects Sri Lanka has received,” Herath stated. We are dedicated to moving forward with this refinery, which has been discussed between the two nations for many years. As soon as feasible, we want to start construction.
A request for comment was not immediately answered by a Sinopec official in China, and calls to its Sri Lanka headquarters were not returned. Despite having a few smaller refineries, Sri Lanka is dependent on imported oil, costing the financially constrained nation billions of dollars annually.
The nation is seeking to attract foreign investment to stabilise its economy after it collapsed due to a catastrophic foreign exchange crisis in 2022. Sri Lanka reported a quicker-than-anticipated rally after obtaining a $2.9 billion International Monetary Fund (IMF) program in 2023.
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