Sri Lanka, Sinopec Partner for $3.7 Billion Refinery in Hambantota

Sri Lanka has finalized a significant agreement with China's Sinopec to construct a $3.7 billion oil refinery in Hambantota, marking the largest foreign investment in the country's history. The initiative, announced by Foreign Minister Vijitha Herath, aims to reduce the nation's reliance on imported oil and bolster economic growth following a severe foreign exchange crisis in 2022. The project will address critical land, tax, and water issues within a month, reflecting a strengthened partnership between Sri Lanka and China. A substantial portion of the refinery's output is expected to be exported, contributing to foreign exchange earnings. This agreement comes as part of broader engagement between Sri Lanka and China, which includes multiple agreements aimed at enhancing economic ties and infrastructure development. The deal is seen as a vital step in stabilizing Sri Lanka's economy and improving the livelihoods of local communities.