Sinopec and Sri Lanka to fast-track a $3.7 billion refinery project.

Sri Lanka has partnered with Chinese energy giant Sinopec to expedite the construction of a $3.7 billion oil refinery in the southern port city of Hambantota, marking one of the largest foreign investment projects in the country. The refinery aims to reduce Sri Lanka’s heavy reliance on imported oil, which has placed a significant financial burden on the nation, while also supporting the Hambantota Port’s development as a regional hub through bunkering services.

The agreement comes as Sri Lanka seeks to attract foreign investment to stabilize its economy following a severe foreign exchange crisis in 2022 and a subsequent $2.9 billion IMF bailout in 2023. While collaborating with Sinopec, Sri Lanka continues discussions with India on a proposed fuel pipeline and remains open to other refinery proposals, reflecting its strategic balancing of partnerships in the region.