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USD 3.7 bn H’tota refinery: China won’t launch project without bigger local market share

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China has declared that China Petroleum and Chemical Corporation (SINOPEC) will not proceed with the USD 3.7 bn Hambantota oil refinery project unless a consensus could be reached on the percentage of the output that could be sold in the local market.

China has informed the NPP government that SINOPECwill not be able to sustain the project in terms of the original agreement that stipulated that 80% of the output be exported and 20 % sold in the Sri Lankan market, according to sources familiar with the issue.

Once fully operational, the strategic facility will be able to process 200,000 barrels of crude oil a day. The proposed facility, together with the Hambantota International port, which was taken over by China in 2017 on a 99-year lease, emphasise significant Chinese presence in the country.

SINOPEC with about 12% market share is among the foreign companies engaged in fuel distribution in Sri Lanka at the moment. Other foreign players are Lanka India Oil Company (LIOC) and joint venture by Shell Brands International AG (Shell) and RM Parks (Private) Limited, the latter being the latest entrant.

LIOC entered the market way back in 2003 during Ranil Wickremesinghe’s tenure as the Prime Minister. LIOC holds the second biggest market share with 211 fuel stations with SINOPEC being third and joint Shell Brands International AG (Shell) and RM Parks (Private) Limited in fourth place. CPC remains the market leader with some 800 odd fuel stations countrywide.

Sources said that whatever the Chinese and Sri Lankan government representatives said in public the launch of the project primarily would depend on a new formula. The Island learns that the Chinese expect to sell 30% of the output here. “The Chinese are of the view that 20% share is not sufficient to sustain the project,” sources said.

Sri Lanka and China in January 2025 announced plans for the SINOPEC project dubbed the largest single Chinese direct investment here following President Anura Kumara Dissanayake’s three-day state visit to Beijing. Dissanayake’s delegation included Minister of Foreign Affairs, Employment and Tourism Vijitha Herath, Minister of Transport, Highways, Ports and Civil Aviation Bimal Rathnayake, and Sri Lankan Ambassador to China, Majintha Jayesinghe. Outspoken Chinese Ambassador to Sri Lanka Qi Zhenhong was also present at all key meetings with representatives of China Petrochemical Corporation (SINOPEC Group), China Communications Construction Company Ltd (CCCC), China Merchants Group (CMG), Huawei, and BYD Auto, a leading company in the automobile manufacturing sector.

Pointing out that Sri Lanka and China hadn’t been able to resolve the knotty problem for about 15 months, sources said that Sri Lanka was also under pressure from India to expedite the Trincomalee oil tank farm development project. Sri Lanka finalized an agreement with India and United Arab Emirates (UAE) in early April 2025 to develop Trincomalee as an energy hub.

Sources said that in line with the overall plans involving China as well as India-UAE, Sri Lanka was required to enhance the fuel storage facilities as soon as possible. The ongoing West Asia conflict underscored the responsibility on the part of the incumbent dispensation to take tangible measures to enhance storage facilities.

The Trincomalee and Hambantota projects could be on a collision course, sources said. The likelihood of Indo-Lanka agreements in respect of WW two era oil tank farms in Trincomalee, particularly the one negotiated during Gotabaya Rajapaksa’s presidency having animpact on the Hambantota oil refinery couldn’t be ruled out, sources said.

President Dissanayake during his May Day address disclosed the crisis faced by his government in ensuring uninterrupted oil supplies. Dissanayake said that the government had no option but to increase fuel quotas given to various categories in view of the arrival of fuel ships in Colombo as Sri Lanka lacked storage facilities.

Sources said that energy insecurity was at stake due to the continuing instability in the global markets caused by US actions in Hormuz Strait.

Newly-appointed Energy Minister Anura Karunathilake is believed to be engaged in consultations with relevant parties. Earlier Punyakumara Dissanayake who resigned recently over the coal scam handled the Hambantota refinery matter.

by Shamindra Ferdinando



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Landslide Early Warnings issued to the Districts of Colombo,Gampaha, Kalutara, Kegalle, Nuwara Eliya and Ratnapura

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The National Building Research Organisation [NBRO] has issued landslide early warnings to the Districts of Colombo, Gampaha, Kalutara, Kegalle, Nuwara Eliya and Ratnapura effective from 1700 hrs today [24th May 2026] to 1700 hrs on Monday [25th May 2026].

Accordingly,
LEVEL II [AMBER] landslide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Dehiowita, Deraniyagala, Ruwanwella and Yatiyanthota in the Kegalle district and Kuruwita, Ratnapura, Ayagama and Eheliyagoda in the Ratnapura district.

LEVEL I [YELLOW]  landslide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Seethawaka and Padukka in the Colombo district, Attanagalla in the Gampaha district, Palindanuwara, Mathugama, Bulathsinhala, Agalawatta, Ingiriya and Horana in the Kalutara district, Bulathkohupitiya in the Kegalle district, Ambagamuwa in the Nuwara Eliya district and Kiriella, Pelmadulla, Nivithigala, Elapatha and Kalawana in the Ratnapura district.

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PM concludes official visit to UK

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Prime Minister Dr Harini Amarasuriya concluded a successful official visit to the United Kingdom from 18 to 22 May 2026. The visit was undertaken to participate in the 43rd Commonwealth of Learning (COL) Board of Governors Meeting 2026 and to advance bilateral, academic, and community engagement.

The Prime Minister commenced her programme with academic engagements at the Institute of Development Studies (IDS), University of Sussex, where she addressed the 60th anniversary celebration. Addressing the gathering, the Prime Minister reflected on the relationship between politics, governance, and development, drawing from Sri Lanka’s recent political and economic experiences. She emphasized the challenges of balancing governance, economic recovery, social protection, and institutional reform while responding to public expectations and maintaining democratic accountability.

The Prime Minister subsequently delivered the 2026 Annual Lecture at the St Antony’s College, University of Oxford, organized by the Oxford School of Global and Area Studies (OSGA). Addressing the audience comprising students, academics, and researchers from across the University of Oxford, the Prime Minister reflected on the intersections of development, governance, and politics in Sri Lanka while discussing the broader realities faced by the country attempting to achieve meaningful social and economic reform. During her visit to Oxford, she also engaged with scholars and Sri Lankan fellows of the Chevening CRISP programme.

During the visit, Prime Minister Amarasuriya held bilateral discussions with  Ms Yvette Cooper Secretary of State for Foreign, Commonwealth and Development Affairs of the United Kingdom. During the discussions, Prime Minister Amarasuriya conveyed Sri Lanka’s appreciation for the United Kingdom’s support following Cyclone Ditwah, including ongoing rebuilding and recovery assistance, and commended the UK’s continued efforts to facilitate increased bilateral trade and exports for Sri Lanka. She also briefed the UK side on Sri Lanka’s economic developments and policy priorities, reaffirming the Government’s commitment to human rights, reconciliation, and the country’s positive growth trajectory. Both sides exchanged views on global geopolitical developments, energy challenges, and regional connectivity, and reaffirmed their commitment to further strengthening bilateral cooperation in areas of mutual interest.

At a discussion with Ms Bridget Phillipson, UK Secretary of State for Education Prime Minister Amarasuriya emphasized the importance of sustaining meaningful institutional partnerships, enhancing quality assurance in higher education, and expanding opportunities for students and educators. Both sides reaffirmed the long-standing and historic cooperation between Sri Lanka and the United Kingdom in education and expressed interest in further deepening collaboration in student mobility, joint programmes, and research.

The Prime Minister also met with academic experts from the British Council at the High Commission in London to discuss strengthening cooperation in education. The discussions focused on strengthening cooperation in education, particularly in teacher training, English language programmes, education frameworks, and language acquisition skills. The meeting also addressed ways to improve quality assurance, expand research collaboration, and enhance learning opportunities for students and educators.

The Prime Minister attended the 43rd Commonwealth of Learning (COL) Board of Governors Meeting 2026 from 21 to 22 May 2026. She met with  Shirley Ayorkor Botchwey, Secretary-General of the Commonwealth of Nations, at the Commonwealth Secretariat, where discussions focused on strengthening cooperation within the Commonwealth framework, including climate change, climate finance, democratic governance, and women’s political participation. The Secretary-General reaffirmed the Commonwealth’s readiness to continue supporting Sri Lanka through technical assistance, capacity-building initiatives, and collaboration in areas including climate finance and electoral governance.

Prime Minister Amarasuriya visited the London Buddhist Vihara ahead of its upcoming centenary celebrations, where she met with the Most Venerable Bogoda Seelawimala Nayaka Thera, Chief Sangha Nayaka of Great Britain and Head of the London Buddhist Vihara and discussed the preparations for the celebrations and the Vihara’s longstanding contribution to the Sri Lankan community. She subsequently engaged with members of the Sri Lankan community at a separate community event.

Concluding her successful official visit to the United Kingdom, Prime Minister Dr. Harini Amarasuriya arrived in Sri Lanka on Satueday morning via Bandaranaike International Airport.

[Prime Minister’s Media Division]

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Sri Lanka cricket finances ‘greater than feared’: interim chief

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Eran Wickramaratne gestures during a press conference at the Sri Lanka Cricket Board office in Colombo on May 21 (Ishara S. KODIKARA/AFP)

(AFP)Financial irregularities surrounding Sri Lankan cricket were far worse than feared, government-appointed administrators said Thursday, promising a full accounting and sweeping reforms.

“We have already ordered a forensic audit of the accounts,” Eran Wickramaratne, interim president of Sri Lanka Cricket (SLC), told his first news conference since taking office last month.

He said financial irregularities were “far greater than initially feared”.

He said the new SLC leadership — handpicked by the government of President Anura Kumara Dissanayake — would bring in sweeping reforms as concerns linger over international sanctions.

The current administration was appointed following the mass resignation of SLC’s elected officials last month — a move that raised fears of possible suspension by the International Cricket Council (ICC) over political interference.

The SLC, the country’s richest sports body, was suspended for two months in 2023 on similar grounds.

Wickramaratne, however, said discussions with the ICC were underway on reforming the SLC.

“Our talks with the ICC have been extremely cordial and constructive,” he said.

“We have been very open and transparent in what we are doing, and they want us to pursue open and transparent methods in doing this.”

Reforms include drafting a new constitution aimed at curbing abuses that allowed groups to retain power for a prolonged period, he added.

Four-time SLC president Shammi Silva and his entire committee stepped down in April after the government intervention, clearing the way for the current overhaul.The previous administration had also faced criticism over the national team’s performances, including an early exit from the T20 World Cup, which Sri Lanka co-hosted with India earlier this year.

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