Sinopec delegation to arrive for talks on US$3.7bn Hambantota refinery

Govt. assures China agreement will be finalized early this year  

It has sought increased access to the local market, but the government has differed in this regard  

 If finalized, Sinopec will make the single largest foreign direct investment in Sri Lanka 

By Kelum Bandara   

A high-level delegation from Sinopec is expected to arrive in Sri Lanka early next month to work on the finalization of agreement for the oil refinery project in Hambantota, a source familiar with the process told the Daily Mirror yesterday.   

The MoU for the proposed US $ 3.7 billion investment was signed in January, last year when President Anura Kumara Dissanayake visited China as his second official visit upon election to office.  

 Sinopec, China’s state-owned energy giant, is planning to develop the US $ 3.7 billion oil refinery in Hambantota. However, the project implementation was delayed because the company sought amendments to the original agreement. It has sought increased access to the local market, but the government has differed in this regard.   

When Chinese Foreign Minister Wang Yi met with his Sri Lankan counterpart Vijitha Herath, it was discussed. Minister Herath conveyed that the Agreement related to the SINOPEC Oil Refinery Project in Hambantota will be finalized in the first quarter of 2026. The Chinese Minister who is also a member of the Politburo of the Communist Party of China (CPC) Central Committee was in Sri Lanka recently on a transit visit.   

The source, meanwhile, said that the agreement was planned to be finalized last month.   

“Then, it was put off till January. Now, it is planned to be done early this year. A top-level company delegation will arrive in Sri Lanka during the first week of February,” the source said.   

If finalized, Sinopec will make the single largest foreign direct investment in Sri Lanka. The Sinopec refinery was originally approved in 2023. If built, it will have capacity to process 200,000 barrels of crude oil per day. It will be located near the Chinese-built and operated Hambantota port.