President Anura Kumara Dissanayake announced plans for an official visit to the Middle East in February, focusing on strengthening Sri Lanka’s energy and economic sectors. Addressing a public gathering, the President discussed key initiatives, including partnerships with India and infrastructure projects supported by China.
Oil Refinery Collaboration with India
The President revealed plans to establish an oil refinery in partnership with India, aiming to process and export petroleum globally.
“We will join hands with the Indian company and build an oil refinery. We will refine the oil, store it, and sell it to the world,” he stated.
He also emphasized the strategic importance of Trincomalee’s 99 oil tanks for the refinery project. Of these, Sri Lanka holds 24 tanks, while 14 have been allocated to the Indian Oil Corporation (IOC), leaving 61 for future use.
Sampur Power Plant Agreement
Highlighting energy sector developments, President Dissanayake outlined progress on the Sampur power plant, a joint venture with India. Ownership of the plant is split equally, and negotiations have reduced electricity costs from USD 0.07 per unit to USD 0.0597 per unit.
“We are now building that power plant,” the President noted, expressing optimism about the project’s contribution to energy security.
Fuel Prices and Financial Challenges
The President acknowledged recent reductions in diesel prices under his administration, though further cuts are unlikely due to financial constraints.
“The Petroleum Corporation owes Rs. 900 billion. Debt repayment is linked to each liter of fuel sold. Excise duty will be removed once the debt is cleared,” he explained.
Infrastructure Support from China
President Dissanayake also outlined projects supported by Chinese grants, including:
- A USD 1.2 million-funded conference hall in Colombo Port City.
- An oil refinery in Hambantota.
Anti-Corruption Efforts
Addressing public concerns, the President affirmed that legal action against corruption is progressing, with several cases expected to conclude by January’s end.
“Cases are being filed vigorously,” he assured. “Previously, files were hidden, but now the work has started in earnest.”
The President’s plans reflect a multi-faceted approach to economic recovery and energy security, with a focus on regional partnerships and infrastructure development.
