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Saturday, 23 September 2017 - 14:59
Sri Lanka to build oil refinery in Hambantota with Chinese investments



Sri Lanka is in talks with two Chinese companies about investing up to $ 3 billion to build in a new refinery at its Chinese-controlled port, a top government official has said.

Sri Lanka wants to build a new refinery in its southern Hambantota port, where China Merchants Port Holdings has a 99-year lease to handle commercial operations.

Located near the main shipping route from Asia to Europe, Hambantota port is likely to play a key role in China’s ‘One Belt, One Road’ trade route initiative.

Mangala Yapa, a director at the state-run Board of Investment, said two Chinese companies had put forward a joint venture proposal for the refinery, which is expected to produce 5 million tonnes per annum with an investment between $ 2.5bn and $ 3bn.

He did not name the Chinese firms.

“The investment is large and we are discussing with the two companies on that basis,” he has told Reuters, adding the joint venture plan was chosen from three bids including one from a US company through a local partner.

“The refinery needs around 500 acres of land and we can’t reserve the land. Many people try to get the land first and then look for investors.” Yapa did not elaborate on the plans of the proposed refinery.

(Source: Reuters)

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