Sri Lanka and Sinopec Partner for $3.7 Billion Oil Refinery

Sri Lanka signed an agreement with China’s Sinopec to fast-track a $3.7 billion oil refinery in Hambantota. The project marks one of the largest foreign investments for Sri Lanka, which is seeking economic stabilization. The refinery aims to reduce dependence on imported oil amid ongoing discussions with India.

In a significant development, Sri Lanka has entered into an agreement with China's state-owned energy giant Sinopec to expedite the construction of a $3.7 billion oil refinery in the southern port city of Hambantota.

The initiative, hailed by Sri Lankan Foreign Minister Vijitha Herath as one of the largest foreign investment ventures for the nation, aims to diminish Sri Lanka's reliance on costly imported oil, a primary challenge for the economically struggling island.

Sri Lanka is concurrently negotiating with India to establish a fuel pipeline. These moves are part of broader efforts to stabilize Sri Lanka's economy after a severe foreign exchange crisis in 2022.

(With inputs from agencies.)