Dissanayake Secures $3.7B Chinese FDI for Hambantota Oil Refinery

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Posted by NewAdmin on 2025-02-14 08:45:10 |

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Sri Lanka Secures $3.7 Billion Chinese FDI
Sri Lanka has successfully secured one of its largest foreign direct investments (FDIs) as President Anura Kumara Dissanayake announced a $3.7 billion deal with Sinopec, China’s state-owned oil company, during his ongoing state visit to China. This investment will fund a new oil refinery in the southern Hambantota district, with a capacity to process 200,000 barrels per day. The move is part of Sri Lanka's broader efforts to boost its economic development and strengthen ties with China.

Strengthening Bilateral Ties
During bilateral talks, President Dissanayake and Chinese President Xi Jinping reaffirmed their commitment to deepening the traditional friendship between the two nations. They pledged to usher in a “new era” of development by enhancing economic cooperation and advancing initiatives under China's Belt and Road framework. Both leaders emphasized the importance of collaboration in fostering regional stability and economic growth.

Focus on Belt and Road Cooperation
The agreement also highlights the continued expansion of Belt and Road cooperation, a strategic initiative led by China to enhance infrastructure and trade routes globally. Through this investment, Sri Lanka aims to improve its energy infrastructure, contributing to economic resilience and job creation, while China secures further access to strategic locations in the Indian Ocean.

Implications for Sri Lanka’s Future
This deal marks a significant milestone for Sri Lanka, as the country seeks to overcome economic challenges and attract more international investment. The Sinopec refinery project is expected to generate significant economic benefits, including job creation and technological transfer. However, critics caution about the growing dependence on Chinese investments and potential debt implications for Sri Lanka in the long term.

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