ECONOMYNEXT – Sri Lanka is in discussions with China’s Sinopec to give extra land and assure water supplies after the company decided to expand the capacity of a planned oil refinery in Hambantota, Energy Minister Kanchana Wijesekera said.
“There are concerns on how the water supply is going to be provided for the refinery,” Minister Wijesekera told reporters Friday.
The refinery will need more land and also revise conditions in a Board of Investment agreement, he said.
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Sinopec to double capacity of new refinery in Sri Lanka’s Hambantota
Recommendations and decisions from Sri Lanka’s side had already been sent and Sinopec is expected to revert back in May.
“We are hoping to sign the agreement once everyone has agreed,” Wijesekara said.
The principle agreements are expected to be signed by June, he said.
The refinery could sell up to 10 percent of its output in the domestic market.
“There is no commitment by the government to purchase anything,” Minister Wijesekera said. (Colombo/Apr19/2024)