January 23, Colombo (LNW): Sri Lanka is keen to swiftly resolve land and other related matters concerning the Chinese state-owned energy company Sinopec, according to the country’s Minister of Foreign Affairs, Vijitha Herath.
Speaking on the potential timeline for the development of Sinopec’s oil refinery in Sri Lanka, Minister Herath expressed confidence in fast-tracking the project.
He stated, “We are committed to progressing as quickly as possible. We aim to expedite the development programme and are ready to continue on this fast-track path.”
Regarding the land allocation for the refinery, Minister Herath mentioned that while the precise lease duration had not been finalised, Sinopec initially requested 500 acres, with an additional 200 acres currently under consideration.
“The exact terms are still being worked out. The lease period and additional land request will be determined based on the finalised Memorandum of Understanding (MoU). But as of now, they have expressed interest in an extra 200 acres,” he said.
The development follows a significant agreement signed during Sri Lankan President Anura Kumara Dissanayake’s visit to China in mid-January 2025.
The agreement secured a Foreign Direct Investment (FDI) of $3.7 billion from Sinopec to establish a state-of-the-art oil refinery in Hambantota.
The refinery will not only cater to local demand but is also expected to export a considerable share of its output, as confirmed by the President’s Media Division.
In response to inquiries about the possibility of a fuel pipeline deal with India, Minister Herath clarified that no formal agreement had been made yet.
“Discussions are ongoing, and during our recent visit to India, both sides agreed to continue engaging on this matter. However, no concrete agreement on a pipeline has been signed at this point,” he explained.
Minister Herath also provided an update on the stalled China-Sri Lanka Free Trade Agreement, which has been suspended since 2018. He revealed that both governments had agreed to establish a working group to revisit the terms of the agreement.
“No MoU has been signed yet, but we are moving forward with plans to form a dedicated working group to further explore the trade agreement,” he said.
On the topic of foreign research activities in Sri Lanka, the Minister addressed the Cabinet’s recent decision to form a committee to oversee such initiatives.
“The Cabinet has decided to set up a committee, and I will be leading it. However, we have not yet appointed the committee members,” he added.
Finally, when questioned about the provisions of the Indo-Lanka Pact of 1987, specifically regarding the need to inform India of foreign vessels arriving in Sri Lanka, Minister Herath emphatically stated, “There is no such requirement. There is no clause in the agreement mandating us to notify India about foreign vessels. We can release the Standard Operating Procedures (SOP) to clarify this further.”
