COLOMBO (Oct 15) – Chinese state-owned energy giant Sinopec has urged the Sri Lankan government to expedite work on its proposed USD 3.7 billion oil refinery at the Hambantota port, a strategically located deep-sea hub in the island’s south.
A Sinopec delegation met Foreign Minister Vijitha Herath on Wednesday to discuss the delays in implementing the refinery project, according to a statement from Sri Lanka’s Foreign Ministry.
The refinery agreement was signed in January 2025 during President Anura Kumara Dissanayake’s visit to Beijing as part of a broader push to deepen energy and infrastructure ties with China. However, officials said the project’s commencement has been slow, pending clearances and procedural coordination between multiple Sri Lankan agencies.
Sinopec officials expressed confidence that once operational, the Hambantota refinery will not only meet Sri Lanka’s domestic fuel needs but also position the country as a regional refining and export hub.
The refinery is one of the largest foreign direct investments in Sri Lanka’s energy sector and is expected to produce up to 200,000 barrels per day, creating thousands of direct and indirect jobs.