China secures another strategic investment in Sri Lanka

2 November 2023 06:22 am - 12 - {{hitsCtrl.values.hits}}

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China’s Sinopec is to make an initial investment of US$1.5 billion, the single largest foreign direct investment (FDI), in building a refinery in Hambantota once the agreement is finalized within the next two weeks, a top source said.

It remained a foregone conclusion in political circles that the company would be awarded the project, though the government says it is open to any company participating in the competitive bidding process.

Previously, Colombo Port City, another Chinese investment, remained the largest FDI project in Sri Lanka. The source said Sinopec will make an investment of US$1.5 billion, but more money later in other related developments of the refinery.

Hambantota is a deep-sea port constructed during the time of former President Mahinda Rajapaksa with financial assistance from China. However, the port was leased to Chinese state-owned firm ‘China Merchants ‘in 2017 for 99 years for US$ 1.12 billion.

During the recent visit to China, President Ranil Wickremesinghe held talks with Sinopec Group Chairman Ma Yongsheng and top executives in Beijing last week. Sinopec has already entered Sri Lanka’s retail fuel market.

Sinopec secured the project since the only other contender to the project, Vitol Singapore, withdrew from the race.

Meanwhile, the operations of two other foreign fuel companies –the United States-based RM Parks and United Petroleum Australia—will be delayed. RM-Parks has deposited the performance bond, though.

“We have placed a condition that they cannot remit their profits from fuel trading technically for two years after the arrival of each shipment. Therefore, it becomes a huge initial investment for them. Therefore, they need time,” the source said. (Kelum Bandara)

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Comments - 12

DOT Thursday, 02 November 2023 06:44 AM

Where are the West investors?

Hadira Thursday, 02 November 2023 07:03 AM

At last Sri Lanka received 1.5 billion us dollars as the single largest Foreign direct investment after 2015 . I feel this is a huge investment despite we are labelled as a bankrupt country encouraging other possible investors

Steve Thursday, 02 November 2023 07:34 AM

How many are smacking their lips?

Ding ding Thursday, 02 November 2023 07:52 AM

India must build a refinery in Tringo to counter this

Hello Hello Thursday, 02 November 2023 07:54 AM

Rajapaksas made money from the Hambantota port, now it's time for Ranil to make money through the refinery in Hambantota. There is always something in the pipeline to make money. Superb.

What a win for Sri Lanka Thursday, 02 November 2023 08:51 AM

This is fantastic win-win situation for SL. They hope to refine politicians in Humbugtota.

Jude Thursday, 02 November 2023 09:04 AM

What next that we can offer to Chinese!???

BuffaloaCitizen Thursday, 02 November 2023 09:56 AM

Each Chinese Investment means pocket money to Rajapakse's.

Samuel Thursday, 02 November 2023 12:44 PM

Excellent for the country. We don't care from where the investments come. Nobody will take the land and investments when their time is over.

Ram Thursday, 02 November 2023 01:49 PM

Were tenders called for others to send their offers? This will be another loan unless it is a BOT (build Operate

Buddhist Thursday, 02 November 2023 05:29 PM

Will this be the spying base for the Chinese? This is another failure of India.

Punchi Friday, 03 November 2023 07:32 AM

In addition to a strategic harbour also a stockpile of strategic fuel. QUAD, AUKUS watch out

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China secures another strategic investment in Sri Lanka

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