Beijing: China has offered to invest USD 3.7 billion in Sri Lanka, stated to be the biggest-ever foreign investment in the island nation, to build a state-of-the-art oil refinery as the two countries signed a new plan to upgrade BRI cooperation during Sri Lankan President Anura Kumara Dissanayake’s state visit here.
On Thursday, Dissanayake met Chinese Premier Li Qiang and Chairman of the Standing Committee of the National People’s Congress Zhao Leji and pitched for more Chinese investment in his address to Chinese firms.
A day earlier, Dissanayake held talks with his Chinese counterpart Xi Jinping following which the two sides signed 15 agreements.
According to a press release by the Sri Lankan President’s media division, his visit marked a “significant milestone” by securing the largest foreign direct investment to date of $3.7 billion Chinese investment to build a state-of-the-art oil refinery at Hambantota.
“This significant achievement was formalised this morning with the signing of an agreement between Sri Lanka’s Ministry of Energy and Sinopec, a leading Chinese international petroleum corporation,” it said.
The refinery will have a capacity of two lakh barrels.
China has secured the strategic Hambantota port in the Indian Ocean on a 99-year lease as a debt swap. China has also secured a long-term lease to build an economic zone at Hambantota.
Dissanayake incidentally was a critic of the Hambantota port deal for its long-term lease while he was in the opposition.
It was seen as a balancing act as last year India and Sri Lanka inked a deal to jointly develop 85 Word War II-era oil storage tanks at the strategic Trincomalee port in the eastern region of the country.
As Dissanayake concluded his visit, his second foreign tour after his last month’s visit to New Delhi where he committed not to allow Sri Lanka’s territory to be used against the interest of India, there is no word from both sides yet whether Sri Lanka would permit the controversial research ships of China, regarded as spy ships by India, to be berthed at Hambantota port.
