Sri Lanka Approves Sinopec’s Refinery Proposal

Reuters, November 27, 2023

Sri Lanka on Monday approved a proposal by China's Sinopec (600028.SS) to build a $4.5 billion refinery, its energy minister said, making it the largest single investment in the island nation since a crippling economic crisis last year.

The cabinet approval cleared the state-owned refiner to finalise project details and sign an agreement with the government before it starts building the export-oriented refinery at Hambantota in the south of the country.

"Cabinet approval was granted today to award the contract to China Petroleum & Chemical Corporation (SINOPEC) of China," Minister Kanchana Wijesekera wrote on social media platform X.

China is Sri Lanka's biggest bilateral lender and its companies have built highways, sea and air ports and other infrastructure projects on the island off India's southern coast.

For Sinopec, the world's top refiner by capacity and one of the largest petrochemicals producers, the investment would mark a breakthrough in a long effort to expand beyond China's borders. The company also owns refinery assets in Saudi Arabia and petrochemicals production in Russia.

Iran built Sri Lanka's only refinery at Sapugaskanda in the west of the country in 1969. The refinery can process 38,000 barrels of oil per day.

(Reporting by Uditha Jayasinghe; Writing by Shivam Patel; Editing by Louise Heavens and David Goodman)

Click here to read the full article from Reuters.

Copyright 2024 Thomson Reuters. Click for restrictions.

Comments and Discussion

There are no comments yet.

Add a Comment

Please log in or register to participate in comments and discussions.

Inspectioneering Journal

Explore over 20 years of articles written by our team of subject matter experts.

Company Directory

Find relevant products, services, and technologies.

Training Solutions

Improve your skills in key mechanical integrity subjects.

Case Studies

Learn from the experience of others in the industry.


Inspectioneering's index of mechanical integrity topics – built by you.

Industry News

Stay up-to-date with the latest inspection and asset integrity management news.


Read short articles and insights authored by industry experts.

Expert Interviews

Inspectioneering's archive of interviews with industry subject matter experts.

Event Calendar

Find upcoming conferences, training sessions, online events, and more.


Downloadable eBooks, Asset Intelligence Reports, checklists, white papers, and more.

Videos & Webinars

Watch educational and informative videos directly related to your profession.


Commonly used asset integrity management and inspection acronyms.