China to Invest $3.7 Billion in Sri Lanka for Oil Refinery Construction
Beijing: Sri Lanka has secured a major economic boost during President Anura Kumara Dissanayake’s four-day state visit to China. Following discussions with Chinese President Xi Jinping, both countries signed several bilateral agreements. As part of the agreements, Sri Lanka will receive $3.7 billion in financial aid from China to construct a 200,000-barrel-capacity oil refinery in the Hambantota region.
According to reports from Sri Lankan newspapers Daily Mirror and Daily News, the energy ministries of China and Sri Lanka, along with Sinopec, signed the agreement for this project. A significant portion of the refinery’s output will be exported, which is expected to boost Sri Lanka’s foreign exchange earnings. Additionally, the refinery’s construction will help uplift the economic status of low-income communities in the Hambantota region. This investment marks the largest-ever direct foreign investment in Sri Lanka’s history.
Strategic Support from China
China’s state news agency Xinhua reported that President Xi Jinping emphasized China’s commitment to supporting Sri Lanka’s economic recovery during his meeting with President Dissanayake on Wednesday. Xi underscored the importance of enhancing high-quality Belt and Road Initiative (BRI) cooperation between the two nations. He also highlighted the need for collaboration in modern agriculture and the digital economy.
President Xi stated, “China and Sri Lanka should maintain a strategic perspective on bilateral relations and work together to build a China-Sri Lanka community with a shared future.” He reaffirmed China’s prioritization of Sri Lanka in its neighborhood diplomacy, reiterating China’s commitment to respecting Sri Lanka’s independence, sovereignty, and territorial integrity.
Sri Lanka’s Commitment to Regional Connectivity
President Dissanayake expressed gratitude, describing China as a reliable friend and partner of Sri Lanka. He reiterated Sri Lanka’s dedication to enhancing regional connectivity through Belt and Road Initiative cooperation.
This strategic investment and partnership are expected to not only strengthen economic ties between the two nations but also play a crucial role in Sri Lanka’s path to economic recovery and regional integration.