Features
Hambantota oil refinery – From fairy tale to reality?
by Gomi Senadhira
“It is easier to fool people than convince them they have been fooled”– Mark Twain
The signing of US $3.7 billion deal to construct a “state-of-the-art oil refinery” oil refinery, with a capacity of 200,000 barrels, in Hambantota with Chinese state-run oil giant Sinopec during President Anura Kumara Dissanayake (AKD)’s state visit to China, is indeed an important achievement. This is significant because successive governments had tried but failed to attract such a large investment into petroleum refining in Sri Lanka. However, it is appropriate to ask will it become a reality or is it another false promise, a fairy tale? After all, we have been fooled before with “fairy tales” about an oil refinery in Hambantota. Hence, we need to be cautious. Particularly because the most recent attempt to build an oil refinery began as a badly-choreographed farce and ended as a tragedy.
To understand why I am saying so, let’s start with the most recent attempt to build an oil refinery in Hambantota.
Largest Investment under the SLSFTA
In July 2018 the former Minister of Development Strategies and International Trade Malik Samarawickrama announced, during the Parliamentary Debate on the Sri Lanka-Singapore Free Trade Agreement (SLSFTA) that “…. Already, thanks to this FTA, in just the past two-and-a-half months since the agreement came into effect we have received a proposal from Singapore for investment amounting to $ 14.8 billion in an oil refinery for export of petroleum products…. In principle approval has already been granted by the BOI and the investors are awaiting the release of land and environmental approvals to commence the project.”
US $3.85 billion investment by Singapore’s Silver Park International
Eight months after the statement by Minister Samarawickrama in the parliament, on 19th March 2019, Deputy Minister Nalin Bandara and technical advisor to the Ministry, Mangala Yapa, announced at a press conference that the construction of US $3.85 billion oil refinery in the Mirijjawila Export Processing Zone in Hambantota will begin shortly by a Singapore-based Silver Park International (Pte) Ltd with Oman’s Oil and Gas Ministry. The project was a joint venture between Silver Park International, with 70 percent stake in the company, and the Ministry of Oil and Gas of Sultanate of Oman, with 30 percent shares. The investment was billed as Sri Lanka’s largest Foreign Direct Investment (FDI), ever. The oil refinery with the capacity to refine 200,000 barrels of crude oil per day, was expected to generate additional US $7 billion of exports per annum when it becomes fully operational in 2023, by exporting a minimum of 9 million metric tons of petroleum products per year.
Within twenty-four hours of the announcement by the Sri Lankan government on the joint venture, officials of Oman’s Oil and Gas Ministry denied being part of a $3.85 billion plan to build an oil refinery in Sri Lanka. According to a report filed by Reuters, addressing a news conference in Muscat, Salim al-Aufi, undersecretary of Oman’s Ministry of Oil and Gas, stated “No one on this side of the panel is aware of this investment in Sri Lanka …. It came as news to me; I don’t know who is signing the cheque for $3.8 billion.” In addition to that, Sri Lankan and Indian media started to question the credentials of the Singaporean investor.
Despite the Omani government’s denial and the media exposure of questionable credentials of the Singaporean Investor, Sri Lanka’s Board of Investments (BOI) decided to go ahead with the “project for a joint venture of Singapore company and Oman.” And on March 24, 2019, the foundation stone for the petroleum refinery was ceremoniously laid by the Prime Minister Ranil Wickremesinghe at the Mirijjawila Export Processing Zone with the attendance of Omani Minister of Oil and Gas Mohammed bin Hamad Al Rumhy, a number of ministers including Sajith Premadasa and several local parliamentarians.
US $20 billion investment by Singaporean company Sugih Energy International
After that, in October 2019, Sri Lankan newspapers as well as international news websites reported, quoting minister Malik Samarawickrama and Finance Minister Mangala Samaraweera that “The Sri Lankan government has given its approval to the Singaporean company Sugih Energy International (SEI) to build a $20 billion refinery at the port (of Hambantota). The project’s value exceeds the total of all foreign direct investment in Sri Lanka over the past forty year.” Mr. Samarawickrama also stated “”The company will invest in two phases. In the first phase, they have committed an investment of $14.8 billion for the refinery, and further $4 to $5 billion for petrochemical and other projects.”
Fairy Tales to Sell the FTA
Unfortunately, or fortunately, none of these multibillion-dollar investments from Singapore due to the FTA ever saw the light of day. These and almost all other investments from Singapore “thanks to this FTA,” turned out to be “fairy tales” narrated by the government of Prime Minister Ranil Wickremesinghe to sell the Sri Lanka-Singapore FTA, to the parliament and the people of Sri Lanka. Though the “Silver Park” refinery was to become fully operational by 2023, it didn’t even progress beyond the foundation stone by then. The project by “Sugih Energy International Pte Ltd” couldn’t even reach that milestone. In August 2023 the Cabinet of Ministers approved two proposals presented by President Ranil Wickremesinghe in his capacity as the Minister of Investment Promotion to cancel the agreements with these two “Singapore based investors,” Silver Park International and “Sugih Energy International Pte Ltd”, due to their failure in implementing the projects!
BOI’s Failure to exercise Due diligence on these “largest Foreign Direct Investments”
It is difficult to understand as to why the BOI failed so miserably, to exercise DUE DILIGENCE on these “largest Foreign Direct Investments” in Sri Lanka. Due diligence on an investor by BOI is essential to understand the potential risks of the investment and to make informed decisions about whether to allow an investment in or not. More importantly, it is necessary to comply with Anti-Money Laundering regulations and to prevent financial crime. At the very least, the BOI should have ascertained if the investor is a Politically Exposed Person (PEP) and what the sources of the investor’s funds were? If the BOI had undertaken even a cursory appraisal of these two companies, like a simple google search, they would have discovered enough red flags on these two investors.
However, it is necessary to state that it is difficult to find much information on Sugih Energy International through a simple google search. Only news reports on this company are on its “US $20 billion investment in an Oil refinery in Hambantota.” Then there is a reference to a company, based on data from Panama Papers, named Sugih Energy International registered in the British Virgin Islands (which is well-known for its offshore companies) with links to Singapore, in the “Offshore Leaks Database,”. There is also a reference to a Sugih Energy International in the Singapore Business Directory. However, this company had changed its name to AETURNUM ENERGY INTERNATIONAL PTE. LTD. On 10 August 2024. On the same day it had changed its Entity Status from “Live Company” to “In Liquidation – Compulsory Winding Up (Insolvency).”
In contrast, it is possible to get a substantial amount of information on Silver Park International (Pte) Ltd through a simple google search. For example; the registered address of Silver Park International (Pte) Ltd, which is 18, Roberts Lane, #03-01 Singapore, shows the building in Singapore’s Little India where this company is located. #03-01 could be a room number within that building. More interestingly, it reveals the names of nearly a hundred other companies which have 18, Roberts Lane, #03-01 Singapore (218297), as their registered address. This includes an entity specialising in setting up shell companies. Can a shell company located at a shared address, invest US$3.85 billion in Sri Lanka? A cursory appraisal would have also revealed that most of the directors of Silver Park International (Pte) Ltd were Politically Exposed Persons (PEPs) and information on the investigations carried out by India’s Enforcement Directorate on these individuals.
Investigation by India’ s Enforcement Directorate (ED)
Though Sri Lankan authorities failed to carry out due diligence, after an explosive report by ‘The Hindu’ newspaper on ‘single largest foreign investment’ in Sri Lanka by a Singapore based investment company with links to an Indian politician’s family, the authorities across the Palk Strait started to investigate the Indian directors of Silver Park International (Pte) Ltd, namely, Mr S.Jagathrakshakan, a DMK Member of Indian Parliament and former union minister of state for information and Broadcasting, and his family members for their involvement money laundering activities. This was reported widely in the Indian media. And according to these reports in August 2024, Mr. Jagathrakshakan and his family members were fined ₹908 crore ( Sri Lankan Rupees 31 billion) for violation of India’s Foreign Exchange Management Act (FEMA) and the charges were related to “….an investment of ₹42 crore in a shell company, Silver Park International Pte Ltd, incorporated in Singapore in 2017, and an investment of ₹9 crore (Sri Lankan Rupees 308million) in a Sri Lankan company.”
US$ 4.5 billion Oil Refinery by Sinopec
Though the government scrapped these controversial agreements with Silver Park International and “Sugih Energy International Pte Ltd” in August 2023, these agreements with controversial shell companies seriously damaged Sri Lanka’s image as an investment destination. Law-abiding countries do not permit investments, particularly such large investments, without doing a reasonable appraisal of the investors and the sources of the investor’s funds.
After scrapping the agreements with the controversial shell companies in November 2023, the Cabinet of Ministers approved awarding a contract to China Petroleum and Chemical Corporation (SINOPEC) to build a petroleum refinery in Hambantota. It was also announced that the refinery is expected to attract an investment of at least $4.5 billion. However, since then no tangible progress has been reported on this project.
US$ 3.7 billion oil refinery by Sinopec
Now, we have the MOU signed between Sri Lanka’s Ministry of Power and Energy and China’s Sinopec Corporation to build US$ 3.7 billion oil refinery, capable of producing 200,000 barrels of oil per day. Though this was signed during President Anura Kumara Dissanayake’s four-day state visit to China, given the history of this project it is still appropriate to ask will it become a reality this time around or will it be another false promise, a fairy tale?
Conclusion
Given the high-profile manner in which this MOU was signed we can be optimistic about the success of the project. After all, Sinopec is one of the biggest petroleum companies in the world and with a revenue of $429.7billion in 2023, is the fifth on Fortune Global 500 list. We cannot even think about comparing it with shell companies like Silver Park International or Sugih Energy International.
Finally, however, there is one unanswered question about the amount of the investment. The cost of this project appears to have substantially reduced since it was first mooted in November 2023; from US$4.5 billion to US$3.7 billion. Will the Ministry of Power and Energy explain the reasons for this change?
(The writer, a former public servant and a diplomat, can be reached at )
Features
Fractious West facing a more solidified Eastern opposition
Going forward, it is hoped that a reported ceasefire agreement between the US and Iran would provide a basis for a degree of stability in the Middle East and pave the way for substantive peace talks between the powers concerned. The world is compelled to fall back on hope because there is never knowing when President Donald Trump would change his mind and plans on matters of the first importance. So erratic has he been.
Yet, confusion abounds on who has agreed to what. The US President is on record that a number of conditions put forward by him to Iran to deescalate tensions have been accepted by the latter, whereas Iran is yet to state unambiguously that this is so. For instance, the US side claims that Iran has come clear on the point that it would not work towards acquiring a nuclear weapons capability, but there is no official confirmation by Iran that this is so. The same goes for the rest of the conditions.
Accordingly, the peace process between the US and Iran, if such a thing solidly exists, could be said to be mired in uncertainty. Nevertheless, the wider publics of the world are bound to welcome the prospects of some sort of ceasing of hostilities because it would have the effect of improving their economic and material well being which is today under a cloud.
However, questions of the first magnitude would continue to bedevil international politics and provide the breeding ground for continued tensions between East and West. Iran-US hostilities helped highlight some of these divisive issues and a deescalation of these tensions would not inevitably translate into even a temporary resolution of these questions. The world community would have no choice but to take them up and work towards comprehending them better and managing them more effectively.
For example, there are thorny questions arising from the Treaty on the Non-Proliferation of Nuclear Weapons (NPT). Essentially, this treaty bans the processing and use of nuclear weapons by states but some of the foremost powers are not signatories to it.
Moreover, the NPT does not provide for the destroying of nuclear arsenals by those signatory states which are already in possession of these WMDs. Consequently, there would be a glaring power imbalance between the latter nuclear-armed states and others which possess only conventional weapons.
Such a situation has grave implications for Iran’s security, for instance. The latter could argue, in view of the NPT restrictions, that the US poses a security threat to it but that it is debarred by the Treaty from developing a nuclear arms capability of its own to enable it to match the nuclear capability of the US. Moreover, its regional rival Israel is believed to possess a nuclear weapons capability.
Accordingly, a case could be made that the NPT is inherently unfair. The US would need to help resolve this vexatious matter going forward. But if it remains, US-Iran tensions would not prove easy to resolve. The same goes for Iran-Israeli tensions. Consequently, the Middle East would remain the proverbial ‘powder keg’.
Besides the above issues, the world has ample evidence that it could no longer speak in terms of a united NATO or West. Apparently, there could be no guarantee that US-NATO relations would remain untroubled in future, even if the current Iran-US standoff is peacefully resolved. US-NATO ties almost reached breaking point in the current crisis when the US President called on its NATO partners, particularly Britain, to help keep open the Hormuz Straits for easy navigation by commercial vessels, militarily, on seeing that such help was not forthcoming. Such questions are bound to remain sore points in intra-Western ties.
In other words, it would be imperative for the US’ NATO partners to help pull the US’ ‘chestnuts out of the fire’ going ahead. The question is, would NATO be willing to thus toe the US line even at the cost of its best interests.
For the West, these fractious issues are coming to the fore at a most unpropitious moment. The reality that could faze the West at present is the strong opposition shown to its efforts to bolster its power and influence by China and Russia. Right through the present crisis, the latter have stood by Iran, materially and morally. For instance, the most recent Security Council resolution spearheaded by the US which was strongly critical of Iran, was vetoed by China and Russia.
Accordingly, we have in the latter developments some marked polarities in international politics that could stand in the way of the West advancing its interests unchallenged. They point to progressively intensifying East-West tensions in international relations in the absence of consensuality.
It is only to be expected that given the substance of international politics that the West would be opposed by the East, read China and Russia, in any of the former’s efforts to advance its self interests unilaterally in ways that could be seen as illegitimate, but what is sorely needed at present is consensuality among the foremost powers if the world is to be ‘a less dangerous place to live in.’ Minus a focus on the latter, it would be a ‘no-win’ situation for all concerned.
It would be central to world stability for International Law to be upheld by all states and international actors. Military intervention by major powers in the internal affairs of other countries remains a principal cause of international mayhem. Both East and West are obliged to abide scrupulously with this principle.
From the latter viewpoint, not only did the West err in recent times, but the East did so as well. Iran, for instance, acted in gross violation of International Law when it attacked neighbouring Gulf states which are seen as US allies. Neither Iran nor the US-Israel combine have helped in advancing international law and order by thus taking the law into their own hands.
Unfortunately, the UN has been a passive spectator to these disruptive developments. It needs to play a more robust role in promoting world peace and in furthering consensual understanding among the principal powers in particular. The need is also urgent to advance UN reform and render the UN a vital instrument in furthering world peace. The East and West need to think alike and quickly on this urgent undertaking.
Features
Science-driven health policies key to tackling emerging challenges — UNFPA
Marking World Health Day on April 7, health experts have called for a stronger commitment to science-based decision-making to address increasingly complex and evolving health challenges in Sri Lanka and beyond.
Dr. Dayanath Ranatunga, Assistant Representative of the United Nations Population Fund, stressed that health is no longer confined to hospitals or traditional medical systems, but is shaped by a broad spectrum of social, environmental, and technological factors.
“This year’s theme, ‘Together for Health. Stand with Science,’ reminds us that science is not only for laboratories or policymakers. It is a way of thinking and a tool that shapes everyday decisions,” he said.
Dr. Ranatunga noted that modern health challenges are increasingly interconnected, ranging from infectious diseases such as COVID-19 to climate-related risks, demographic shifts, and emerging forms of online violence.
He warned that maternal and newborn health continues to demand urgent attention despite progress. Globally, an estimated 260,000 women died from pregnancy and childbirth-related causes in 2023 alone—many of them preventable through timely, science-based interventions.
“In countries like Sri Lanka, where fertility rates are declining and survival rates improving, every pregnancy carries greater significance—not just for families, but for the future of communities and economies,” he said.
The UNFPA official also highlighted the growing threat of Technology Facilitated Gender-Based Violence (TFGBV), including cyber harassment and online abuse, noting that these forms of violence can have deep psychological consequences despite lacking visible physical harm.
He emphasised the need for multidisciplinary, science-informed approaches that integrate mental health, digital safety, and survivor-centered care.
Turning to demographic trends, Dr. Ranatunga pointed out that increasing life expectancy is bringing new challenges, particularly the rise of non-communicable diseases such as diabetes, cardiovascular illnesses, and cancers.
In Sri Lanka, nearly 13.9% of mothers develop diabetes during pregnancy, a trend attributed to obesity and unhealthy lifestyles, underscoring the urgent need for preventive healthcare strategies.
“Are we investing enough in prevention?” he asked, noting that early intervention and healthier lifestyles could significantly reduce long-term healthcare costs, especially in a country with a free public healthcare system.
He underscored the importance of data-driven policymaking, stating that scientific research and analytics enable governments to identify gaps, anticipate future needs, and allocate resources more effectively.
The UNFPA, he said, is already leveraging tools such as Geographic Information Systems (GIS) to improve access to maternal healthcare, including mapping travel times for pregnant women to reach health facilities.
Digital innovation is also transforming healthcare delivery, from telemedicine to real-time data systems, improving efficiency and ensuring continuity of care even during emergencies.
In Sri Lanka, partnerships between the government and development agencies are helping to modernise training institutions, including facilities in Batticaloa, equipping healthcare workers with both clinical and digital skills.
However, Dr. Ranatunga cautioned that technology alone is not a solution.
“It must be guided by evidence and grounded in equity,” he said, pointing out that women’s health remains significantly underfunded, with only about 7% of global healthcare research focusing on conditions specific to women.
He also drew attention to the growing health impacts of climate change, including extreme weather, food insecurity, and displacement, describing it as an emerging public health crisis.
“Health does not begin in hospitals. It is shaped by the environments we live in, the choices we make, and the systems we build,” he said.
Calling for renewed commitment, Dr. Ranatunga urged stakeholders to invest in prevention, embrace innovation, and ensure that science remains central to policy and practice.
“Science is not just about knowledge—it is about ensuring that everyone has the opportunity to live healthy, dignified lives, and that no one is left behind,” he added.
By Ifham Nizam
Features
Sharing the festive joy with ‘Awurudu Kaale’
Melantha Perera is well known as a very versatile musician.
He was involved with the band Mirage, as their keyboardist/vocalist, and was also seen in action with other outfits, as well, before embarking on a trip to Australia, as a solo artiste.
I now hear that he has plans to operate as a trio.
However, what has got many talking about Melantha, these days, is his awesome work with the visually impaired Bright Light Band.
They have worked out a special song for the Sinhala and Tamil New Year, aptly titled ‘Awurudu Kaale.’
Says Melantha: “This song has been created to celebrate the spirit of the Sinhala and Tamil New Year and to share the joy of the Awurudu season with all Sri Lankans”.
Yes, of course, Melantha composed the song, with the lyrics written collaboratively by Melantha, Badra, and the parents of the talented performers, whose creative input brought the song to life during moments of inspiration.

Melantha Perera: Awesome work with Bright Light Band
This meaningful collaboration reflects the strong community behind the Bright Light Band.
According to Melantha, accompaning the song is a vibrant video production that also features the involvement of the parents, highlighting unity, joy, and togetherness.
Beyond showcasing their musical talents, the visually impaired members of Bright Light Band deliver a powerful message, through this project, that their abilities extend beyond singing, as they also express themselves through movement and dance.
Melantha expressed his satisfaction with the outcome of the project and looks forward to sharing it with audiences across the country during this festive season.
He went on to say that Bright Light Band extends its sincere gratitude to Bcert Australia for their generous Mian sponsorship, the CEO of the company, Samath Fernando, for his continuous support in making such initiatives possible, and Rukshan Perera for his personal support and encouragement in bringing this project to completion.
The band also acknowledges Udara Fernando for his invaluable contribution, generously providing studio space and accommodating extended recording sessions to suit the children’s availability.
Appreciation is warmly extended to the parents, whose unwavering commitment from ensuring attendance at rehearsals to supporting the video production has been instrumental in the success of this project.
Through ‘Awurudu Kaale’, Bright Light Band hopes to spread festive cheer and inspire audiences, proving that passion and talent know no boundaries.
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