A high-level delegation from Sinopec is expected to arrive in Sri Lanka in early February to work toward finalising the agreement for the proposed oil refinery project in Hambantota, a source familiar with the matter told the media yesterday.
The Memorandum of Understanding for the US$ 3.7 billion investment was signed in January last year during President Anura Kumara Dissanayake’s visit to China, his second official overseas visit after assuming office.
China’s state-owned energy giant Sinopec plans to develop the refinery, which has faced delays due to the company seeking amendments to the original agreement. Among the key issues has been Sinopec’s request for greater access to the local market, a proposal on which the government has taken a different position.
The project was discussed during a recent meeting between Chinese Foreign Minister Wang Yi and Sri Lanka’s Foreign Minister Vijitha Herath. Minister Herath conveyed that the agreement related to the Hambantota oil refinery project is expected to be finalised in the first quarter of 2026. Wang Yi, who is also a member of the Politburo of the Communist Party of China Central Committee, was in Sri Lanka on a recent transit visit.
According to the source, the agreement was initially expected to be finalised last month but was postponed to January and then delayed further. “Now, it is planned to be concluded early this year, with a top-level Sinopec delegation scheduled to arrive in Sri Lanka during the first week of February,” the source said.
If finalised, the project would represent the single largest foreign direct investment in Sri Lanka. Originally approved in 2023, the refinery is planned to have a processing capacity of 200,000 barrels of crude oil per day and will be located near the Chinese-built and operated Hambantota Port.
