Sri Lanka expects Chinese energy giant Sinopec to begin construction on a $3.7 billion oil refinery this year, while negotiations continue over the company’s request for expanded access to the domestic fuel market, Energy Minister Kumara Jayakody said on Tuesday.

The refinery, approved in 2023, will be located near the Hambantota port—a Chinese-built and operated facility in southern Sri Lanka—and will have the capacity to process 200,000 barrels of crude oil per day. “The land has already been allocated, and the other facilities are in place. The government shares the same expectation that the project will start this year,” Minister Jayakody stated.

Deputy Economic Development Minister Anil Jayantha Fernando noted that the refinery could take about three years to complete.

Fuel Market Access Under Negotiation

Sinopec has pressed for greater local fuel market access as a condition for project feasibility. While Sri Lanka initially planned for only 20% of refinery output to be sold domestically, officials are now considering raising the figure to 40%, according to Minister Jayakody and government sources.

“The point being negotiated is whether it should be 30%, 40%, or another figure,” said Arjuna Herath, Chairman of the Board of Investment of Sri Lanka. “There is strong commitment to work this out.”

A Sinopec spokesperson declined to comment.

Parallel Expansion of State-Run Refinery

In addition to the Sinopec project, Sri Lanka plans to invest $3 billion in expanding its state-owned refinery at Sapugaskanda, near Colombo, from its current 38,000 barrels per day capacity to 150,000 barrels per day.

The expansion, to be carried out by Ceylon Petroleum Corporation, is expected to begin next year and be completed within two to three years, Minister Jayakody said. Sinopec, along with companies from India, China, and Qatar, has expressed interest in the tender, which closes on September 26.

Geopolitical Significance

Sri Lanka’s strategic location along major maritime routes has heightened geopolitical competition between China and India, both investing heavily in infrastructure and energy to strengthen their presence in the Indian Ocean.

“Our country’s location is very important from a geopolitical standpoint,” Minister Jayakody emphasized. “Most sea routes pass nearby, giving Sri Lanka natural advantages in global trade and energy security.”

Chief Secretary of the Western Province, K.G.P. Pushpakumara, announced that a concessional loan scheme will soon be introduced to support micro and small-scale entrepreneurs in the province.

Speaking at the Colombo District Coordination Committee meeting, Pushpakumara revealed that the loan scheme will offer the following terms:

• Interest rate: 3%
• Maximum loan amount: Rs. 3 million
• Repayment period: 7 years, on a diminishing balance basis

He further noted that additional details regarding the scheme will be communicated through the Divisional Secretariats.

Meanwhile, Minister of Transport, Highways, Ports, and Civil Aviation Bimal Rathnayake announced that the long-awaited expansion and development of the High-Level Road will commence next year.

Minister of Justice and National Integration, Harshana Nanayakkara, announced that special mediation boards (Samatha Mandala) dedicated to handling financial disputes will soon be introduced in a bid to reduce the number of such cases being brought before the courts.

As part of the first phase, these dedicated mediation boards will be established in the districts of Colombo, Gampaha, Anuradhapura, Polonnaruwa, Kandy, and Monaragala, the Minister stated.

He made these remarks while attending a program held at the Mediation Boards Commission to mark National Mediation Boards Day 2025.

Minister Nanayakkara highlighted that over Rs. 1 billion has been allocated to the Mediation Boards Commission under the 2025 budget, strengthening its operations. In addition, special mediation boards for land disputes have already been set up in 16 districts, while the newly introduced financial mediation boards aim to ease the burden on the courts by settling such disputes outside the judicial system.

The Minister further noted that over 200,000 disputes are referred to mediation boards each year. With the strengthened process, an additional 200,000 cases currently pending in courts are also expected to be reduced annually.

Showers will occur at times in Western, Sabaragamuwa, Central, Northwestern and Northern provinces and in Galle and Matara districts. 

Showers or thundershowers will occur at several places in the other areas of the island after 1.00 p.m. 
Fairly heavy falls above 50 mm are likely at some places in the island.

The general public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.

By: Staff Writer

September 16, Colombo (LNW): The Department of Immigration and Emigration in Sri Lanka is generating between Rs. 3 billion and Rs. 5 billion in revenue per month, driven by a marked increase in passport applications.

As more Sri Lankans look to leave the country for work or better prospects, enhanced service delivery from the immigration department has translated into financial gains but not without challenges in efficiency and integrity.

Deputy Controller General Mahesh Karunadasa told reporters that much of the revenue growth comes from faster passport services being implemented.

“We now provide one-day service passports within four hours, issuing around 1,500–2,000 daily via this urgent service. Meanwhile, the standard service issues about 1,000 passports each day.” On a busy day, total passport output including urgent, standard, and other type ranges between 4,000 and 5,000.

Fees are structured so that a normal passport usable for all countries costs Rs. 10,000, while an urgent “one-day” passport costs Rs. 20,000, regardless of whether the application is submitted online or in person.

With thousands of passports being processed daily, the department’s revenue intake on peak days may reach tens of millions of rupees.

Historical data show very high demand: 911,757 passports were issued in 2022, and 908,678 in 2023. In just the first five months of 2024, 381,678 passports had already been issued, putting that year likely on track for totals similar to the prior years.

The pattern continued into 2025, with long queues still common at immigration offices despite improvements in digital services and extension of counter operations.

Alongside passport demand, emigration for work has also increased sharply. According to the Sri Lanka Bureau of Foreign Employment, 144,379 Sri Lankan workers left for overseas employment between January and June 2025.

Of these, 88,684 were men and 55,695 women. The top destinations remain the Middle East: Kuwait led with 38,806 departures, followed by the UAE with 28,973, and Qatar with 21,958. East Asia is also rising in importance, with 6,073 going to Japan and 3,134 to South Korea in that period.

Remittances tied to foreign employment are likewise rising. In the first half of 2025, remittance inflows reached US$ 3.73 billion, an increase of roughly 18.9% compared to the first half of 2024, when remittances stood at US$ 3.14 billion.

Net migration statistics also point toward more people leaving than arriving: Sri Lanka’s net migration in 2024 was approximately −27,245 people, a slight increase in the magnitude of emigration compared to 2023.

Despite the revenue and demand, questions about efficiency, transparency, and possible corruption persist. Some applicants report that even when paying for urgent service, delays occur. Others allege unofficial “facilitation fees” or intermediaries demanding extra payments to speed up processing.

While the Immigration Department has made strides in reducing processing times and increasing its online/offline service options, civil society groups maintain that oversight remains weak.

The government’s non-tax revenue targets for 2025 rely heavily on these passport and migration flows. Analysts warn, however, that while high passport issuance and remittances may provide short-term gains, long-term risks include brain drain, diminishing domestic labour supply, and greater dependence on foreign income.

As 2025 progresses, the Department of Immigration and Emigration faces a delicate balancing act: capitalising on rising emigration and passport demand to meet revenue goals, while curbing inefficiencies, ensuring fairness in service delivery, and safeguarding against corruption—anything less could undermine public trust and economic stability.