Sri Lanka signs landmark $3.7 bn deal with Chinese state oil giant

Beijing: Sri Lanka has secured its biggest ever foreign investment after signing a deal with Chinese state run oil giant Sinopec, officials said on Th...

Beijing: Sri Lanka has secured its biggest-ever foreign investment after signing a deal with Chinese state-run oil giant Sinopec, officials said on Thursday.

Sinopec has agreed to invest $3.7 billion to construct a "state-of-the-art oil refinery" with a capacity of 200,000 barrels in the southern Hambantota region, according to the Sri Lanka president's media division.

"During President Anura Kumara Dissanayake's four-day state visit to China, Sri Lanka marked a significant milestone by securing the largest foreign direct investment to date," it said.

A "substantial portion" of the refinery's output would be earmarked for export as part of efforts to shore up Sri Lanka's foreign exchange earnings, a statement said.

"This major investment from China is expected to bolster Sri Lanka's economic growth while uplifting the livelihoods of low-income communities in the Hambantota area," it added.