Minister of Power and Energy, Kanchana Wijesekera, announced that Sinopec China is set to make Sri Lanka’s most substantial foreign direct investment (FDI) in recent times by entering refinery operations in the country. The formal agreement for this strategic move will be announced and signed in October when President Ranil Wickremesinghe visits the People’s Republic of China.
Minister Wijesekera emphasized that this step would mark a significant milestone, strengthening the energy collaboration between Sri Lanka and China while creating new opportunities in the energy market. He noted that the entry of foreign players into the local petroleum market has not only contributed to lowering Sri Lanka’s fuel import expenses but has also transformed the landscape of the domestic fuel business.
Reflecting on the historical context, the Minister pointed out that it was President Ranil Wickremesinghe, who was then Prime Minister, that initially advocated the liberalization of the petroleum sector to attract foreign participation. He highlighted that despite Sinopec being shortlisted for involvement in the petroleum industry in the past, changes in political and policy dynamics prevented their participation. Now, two decades later, this vision has become a reality under President Wickremesinghe’s leadership.
As part of the agreement between Sinopec and the Ministry of Power and Energy of Sri Lanka, Sinopec has obtained a 20-year license to franchise 150 existing filling stations across Sri Lanka and invest in an additional 50 filling stations. Sinopec is committed to leveraging its expertise to provide stable, high-quality oil products to the nation, fostering economic development, and ensuring energy stability in Sri Lanka.
Renowned as the world’s largest fuel refining company, Sinopec boasts an annual production capacity exceeding 250 million tons, affirming its capabilities to contribute significantly to Sri Lanka’s energy sector.
