China’s Sinopec asks 200 more acres for Sri Lanka refinery

Wednesday January 22 Economy Next

ECONOMYNEXT –

China’s Sinopec has asked for 200 acres more land for its planned 3.7 billion dollar refinery expected to be built in Hambantota, Foreign Minister Vijitha Herath said.

Sri Lanka had originally offered 500 acres of land for the project, he said.

Sri Lanka had inked an agreement in Beijing during President Anura Kumara Dissanayake’s visit aiming to resolve remaining issues within a month.

The refinery had tax and water issues to be solved.

Sri Lanka originally offered land for a 100,000 barrels per day refinery when expressions of interest were called.

Sinopec got the deal after Vitol Asia, the other shortlisted party, pulled out.

However, Sinopec wanted to double the capacity, then Energy Minister Kanchana Wijesekera said.

The refinery expected to sell 10 percent of its output domestically but there was no obligation by the government to buy, he said.

Sri Lanka has agreed to clear remaining issues with the refinery project within one month, when President Anura Kumara Dissanayake visited China recently, Minister Herath told reporters Wednesday⍐