Cabinet still evaluates $ 3.7 billion Sinopec investment

By Kelum Bandara

The Cabinet is still in the process of evaluating $ 3.7 billion investment by Sinopec to establish a fuel refinery in Hambantota, Daily Mirror learns.

The company, which has sought to make the largest ever foreign investment in Sri Lanka, requested amendments to tender conditions to put its money on the ground here. An informed source said that the company which expects to export a share of its refined products is seeking enhanced access to the local market and a tax holiday of 25 years.

The MoU for the investment project was signed when President Anura Kumara Dissanayake visited Beijing early this year. It is a 3.7 billion dollar state-of-the-art oil refinery with a capacity of 200,000 barrels per day.

An informed source said the Cabinet is currently in the process of evaluating the project for new terms before implementation. The Energy Ministry has worked out the paper in this regard and referred it to the Cabinet for perusal for final decision on terms and conditions. Any tax holiday for a company has to be reconciled with the International Monetary Fund (IMF) programme.

Sri Lanka has realised more than $ 500 million worth of Foreign Direct Investments (FDIs) during the first half of this year.