The Cabinet is reportedly poised to approve a proposal from Chinese state refining company Sinopec for the construction of a $4.5 billion refinery. The project is set to be discussed in an upcoming cabinet meeting, with Power and Energy Minister Kanchana Wijesekera expressing readiness to move forward pending cabinet approval. Sri Lanka, grappling with its worst economic crisis in over 70 years, seeks new investments to aid in recovery.
Earlier shortlisting in August involved both Sinopec and Vitol companies for the bidding process. However, Vitol reportedly withdrew from consideration. Sinopec, renowned as one of the world’s largest refineries and petrochemical producers, is expected to initiate preliminary engineering plans upon securing official government approval.
The proposed Sinopec refinery is anticipated to enhance Sri Lanka’s fuel supply and pricing dynamics. With a substantial global presence, Sinopec’s entry into Sri Lanka’s energy sector could introduce competition and potentially impact fuel prices, benefiting consumers.
The Sapugaskanda refinery, currently owned by the Petroleum Corporation and established in 1969, processes 38,000 barrels of oil per day. Sinopec’s involvement is poised to bring additional capacity and technical expertise to Sri Lanka’s refining sector.
