Sri Lanka’s Minister of Foreign Affairs, Vijitha Herath, has reaffirmed the government’s commitment to resolving land allocation and other issues related to Chinese energy giant Sinopec. The minister emphasized that the island nation is focused on fast-tracking the development process.
Speaking on the timeline for initiating construction of the Sinopec refinery, Minister Herath stated, “As soon as possible. We are willing to continue a fast-track development program.”
Land Allocation Details
Minister Herath revealed that Sinopec had initially requested 500 acres, with an additional 200 acres under consideration. However, the lease duration and other specifics are yet to be finalized. He noted, “I can’t remember the exact years. If we go through the MoU, we can say. They are asking for another 200 acres. But we have not finalized it yet.”
$3.7 Billion FDI for Oil Refinery
On January 16, 2025, during President Anura Kumara Dissanayake’s visit to China, an agreement was signed with Sinopec to bring a Foreign Direct Investment (FDI) of $3.7 billion to establish an oil refinery in Hambantota. The project aims to export a significant portion of its output, according to the Presidential Media Division (PMD).
No Agreement on India Fuel Pipeline
Addressing speculation about a potential fuel pipeline agreement with India, Minister Herath clarified, “The discussions are ongoing… There is no agreement regarding a pipeline.”
China-Sri Lanka Free Trade Agreement Resumes Discussions
Minister Herath also announced progress on the long-suspended China-Sri Lanka Free Trade Agreement (FTA). Both countries have agreed to form a working group to explore further discussions, though no Memorandum of Understanding (MoU) has been signed yet.
Oversight on Foreign Research
The Cabinet has approved the formation of a committee to oversee foreign research, which will operate under Minister Herath’s leadership. However, the members of this committee are yet to be nominated.
Clarification on Indo-Lanka Pact of 1987
When questioned about the Indo-Lanka Pact of 1987, Minister Herath dismissed claims of a requirement to inform India about foreign vessels arriving in Sri Lanka. He stated, “No, there is no such requirement. We can publish the Standard Operating Procedure (SOP). There is no such clause.”
Sri Lanka’s engagements with China and India remain pivotal as the nation balances its strategic and economic partnerships in the region.
