Thu Jan 16 18:46:38 UTC 2025: ## Sri Lanka Secures $3.7 Billion Investment from China for Oil Refinery

**Colombo, Sri Lanka –** Sri Lankan President Anura Kumara Dissanayake announced a landmark $3.7 billion investment deal with China’s Sinopec during his state visit to Beijing. The agreement will see the construction of a state-of-the-art oil refinery in Hambantota, capable of processing 200,000 barrels per day. This is touted as one of Sri Lanka’s largest foreign direct investments (FDIs) to date.

The refinery will be built adjacent to the Hambantota port, already largely controlled by China Merchant Port Holdings. The project is expected to significantly boost Sri Lanka’s economy by creating jobs and increasing exports. President Dissanayake described the deal as ushering in a “new era” of development in Sri Lanka-China relations.

This investment follows a series of bilateral discussions between President Dissanayake and Chinese President Xi Jinping, solidifying the deepening ties between the two nations and furthering Belt and Road Initiative cooperation. The agreement also signals a continuation of China’s significant investment strategy in Sri Lanka, prioritizing investments over loans in the wake of the island nation’s 2022 economic crisis and sovereign default.

The Sinopec investment replaces a previous, controversial proposal involving a Singapore-based company, which was eventually scrapped.

Beyond the refinery deal, both countries signed several Memoranda of Understanding (MoUs) focusing on economic, social, and industrial collaboration. They also agreed to pursue a comprehensive free trade agreement and to continue working together on projects like the Colombo Port City and Hambantota Port integrated development. China reaffirmed its commitment to assisting Sri Lanka with debt restructuring and working with other creditors to achieve debt sustainability.

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