Sinopec Refinery Project to Break Ground Soon

COLOMBO (News 1st); Sri Lanka's Minister of Foreign Affairs, Vijitha Herath, said that the island nation aims to resolve land and other issues with regard to the Chinese state energy giant Sinopec, as soon as possible.

When asked about the timeline for breaking ground on the Sinopec refinery, Minister Herath stated "As soon as possible. We are willing to continue a fast-track development program," he assured.

Minister Herath on land allocation for the Sinopec refinery, noted that while the exact lease duration is yet to be finalized, the initial request was for 500 acres, with an additional 200 acres being considered. 

"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," he stated.

On the 16th of January 2025, during President Anura Kumara Dissanayake's visit to China, he witnessed the signing of an agreement with Sinopec, which will bring a Foreign Direct Investment (FDI) of $3.7 billion to Sri Lanka. 

The investment will be utilized to establish an oil refinery in Hambantota, with plans to export a significant portion of its output, said the PMD.

Addressing questions about a potential fuel pipeline agreement with India, Minister Herath clarified that no such agreement has been signed. 

"The discussions are ongoing. When we visited India, both countries agreed to continue conversations for the moment. That is it. There is no agreement regarding a pipeline," he explained.

Regarding the China-Sri Lanka Free Trade Agreement, which has been suspended since 2018, Minister Herath announced that both countries have agreed to form a working group to discuss the trade agreement further. No Memorandum of Understanding (MoU) has been signed yet.

Minister Herath also addressed the formation of a committee to oversee foreign research. 

"The Cabinet has decided to appoint such a committee under my leadership. However, we have not yet nominated the members of that committee," he said.

When questioned about the requirement to inform India of foreign vessels arriving in Sri Lanka under the Indo-Lanka Pact of 1987, Minister Herath clarified, "No, there is no such requirement. We can publish the Standard Operating Procedure (SOP). There is no such clause."