World News | China's Sinopec to Establish USD 4.5 Billion Refinery at Sri Lanka's Hambantota Port: Minister

Colombo, Nov 27 (PTI) The Sri Lankan Cabinet has given clearance to allow China's energy major Sinopec to establish a new USD 4.5 billion petroleum refinery plant at the strategic Hambantota port in the island nation, Energy Minister Kanchana Wijesekara said on Monday.

The upcoming plant of Sinopec, which entered the Sri Lankan market in July this year, would be the largest foreign direct investment with USD 4.5 billion for Sri Lanka.

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"The Cabinet has granted its approval on Monday to allow China's Sinopec to establish a new petroleum refinery plant at Hambantota port," Wijesekara said.

He said that the new refinery will be supplemented with an associated products training centre.

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Hambantota is Sri Lanka's second largest port after Colombo port. The port was opened in 2010 and since 2017 it has been managed under a joint venture between the Sri Lanka Port Authority and the China Merchant Ports known as the Hambantota International Port Group.

The port's construction was funded under a commercial loan by the Exim Bank China.

The large Chinese investment in Sri Lanka follows state-run China Merchant Port Holdings' 99-year lease at Hambantota port in 2017 and another million deal to build a logistics and storage hub in Colombo port.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)