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Sri Lanka minister says Sinopec to start deal with refinery by June

The world's biggest refiner, China's Sinopec, plans to begin deal with a. refinery in Sri Lanka by June, the power minister said on. Thursday, advancing a job allocated as the biggest. investment in the crisishit island country.

Sri Lanka is seeking to draw in financial investment in the fight to. stabilise its economy and return to growth following a monetary. crisis brought on by a severe shortage of dollars in 2022 that led. the economy to agreement 2.3% last year.

Authorities of Sinopec Overseas Financial Investment Holding are. visiting Colombo for talks with Sri Lankan authorities.

The authorities suggested that the management of Sinopec has. chosen to double the capability of the refinery from the original. proposal, the minister, Kanchana Wijesekera, wrote on social. media platform X.

They plan to sign the arrangements for the job and. commence work by June 2024.

Sri Lanka's cabinet authorized the job in November, an. investment that Wijesekera has earlier tagged at $4.5 billion.

China is Sri Lanka's greatest two-way lending institution, with its. business constructing highways, sea and air ports and other. facilities on the island off India's southern coast.

The investment by Sinopec, among the largest manufacturers of. petrochemicals, belongs to an effort to broaden beyond China, in. which it has actually acquired refinery assets in Saudi Arabia and. petrochemicals production in Russia.

Iran developed Sri Lanka's only refinery at Sapugaskanda in the. western area in 1969. It can process 38,000 barrels of crude a. day.

(source: Reuters)