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
Addressing human rights needs multi-pronged approach
by Jehan Perera
The ongoing 63rd session of the United Nations Human Rights Council, which runs from September 7 to October 7, 2026, in Geneva is important to Sri Lanka. Its outcome will send a signal to other international actors, including the European Union, as to whether Sri Lanka’s reform policy is on track. The written update on Sri Lanka, prepared by the Office of the United Nations High Commissioner for Human Rights under High Commissioner Volker Türk and presented by Deputy High Commissioner Nada Al-Nashif, has taken a more holistic approach to the government’s performance over the past year. It acknowledged the progress Sri Lanka has made under the NPP government in relation to accountability for financial fraud and other economic crimes. At the same time, the High Commissioner’s update made clear that progress in relation to economic crime cannot be equated with progress in relation to accountability for grave human rights violations committed during the armed conflict and in other periods of political violence.
The government may have felt sufficiently confident that its response to the High Commissioner’s update could be handled by its representative in Geneva and did not require the attendance of Foreign Minister Vijitha Herath. Sri Lanka’s representative Sumith Dassanayake called for a fundamental review of country-specific mandates within the UN Human Rights Council. Sri Lanka has been facing repeated scrutiny in the form of successive UNHRC resolutions from 2012 onwards. Ambassador Dassanayake argued that such mandates should not continue indefinitely and must be regularly assessed against measurable objectives and tangible outcomes. This may reflect confidence that its record of reform is beginning to receive recognition internationally. The reports and statements at the Human Rights Council acknowledged progress in the government’s efforts to address corruption and economic crime.
The government’s anti-corruption drive has included investigations into allegations involving individuals who held the highest political offices in the country. The arrest of former President Ranil Wickremesinghe in connection with alleged misuse of public funds, and the investigation into the controversial SriLankan Airlines Airbus transaction involving former President Mahinda Rajapaksa’s son, are examples of the reach of these investigations. The arrest of SLPP National Organiser and Member of Parliament Namal Rajapaksa in connection with allegations relating to the Airbus purchase scandal has also demonstrated that the government is willing to pursue cases involving politically powerful figures.
Wide Range
The ongoing investigations appear to encompass a wide range of parliamentarians and government members, both past and present. They suggest that accountability for corruption is not being confined to lower-level officials or to individuals who lack political influence. This is precisely the kind of accountability that the public has long demanded and that previous governments have too often failed to deliver. The government is also reaching into the upper levels of the military hierarchies of the past. The case in which 11 young men, most of them Tamil, disappeared after being abducted in Colombo between 2008 and 2009 involved allegations that some families were asked to pay ransoms. The investigation into this case has reached senior military figures. The willingness to pursue such cases is important because it challenges the assumption that those who exercised power during the war are beyond the reach of the law. Such cases would provide a practical test of whether the government’s commitment to accountability for economic crimes is part of a broader commitment to the rule of law.
Success in prosecuting corruption cannot substitute for justice for those who were unlawfully killed, disappeared, tortured or otherwise victimised. The UN report noted that there had been no recognition or accountability for crimes under international law, gross human rights violations and serious violations of international humanitarian law committed by all parties during the war. The government has yet to establish a credible and effective process to address the many cases of enforced disappearance, extrajudicial killing, torture and other serious violations. The government needs to take the international commitments it has inherited on human rights issues seriously. It needs to adopt a multi-pronged approach and go beyond focusing primarily on financial and corruption-related accountability.
Need Action
As a member of the international community, Sri Lanka has a responsibility to abide by the commitments it has made. It cannot selectively uphold international obligations postponing those that are politically difficult. Also, as a small country, Sri Lanka has a self-interest in ensuring the survival of international law, which is all that it has to protect it from the depredations of the bigger international actors. The erosion of international law by powerful states makes it all the more important that smaller states uphold the principles on which the international system is based. Sri Lanka cannot credibly appeal to international law when it is threatened from outside while disregarding its own obligations within. Sri Lanka also needs to win the confidence of its own population that it is committed to justice and equality for all. Public opinion polls and community-level research have disclosed that ethnic and religious minorities are appreciative of the sense of greater security they enjoy under the present government from ethnic or religious extremists.
But a sense of security is not the same as the fulfilment of rights. As far as the Tamil people are concerned, the government has yet to deliver on several of its specific promises. These include the long-standing problems of missing persons, the release of political prisoners who have been members of Tamil militant organisations, and the return of land taken over for military purposes during the war. The issue of Buddhist statues and archaeological sites found on their properties which are then taken from their control continue to trouble them especially as they see no signs of resolution of those disputes. The issue of pastureland in the east of the country in Mylathamadu is particularly concerning to them as they see orders by successive presidents, both President Ranil Wickremesinghe and President Anura Kumara Dissanayake, being disregarded on the ground. The Mylathamadu pastureland dispute is where traditional Tamil dairy farmers have engaged in multi-year protests against the ongoing encroachment of their ancestral grazing lands by Sinhalese crop cultivators relocated under government development schemes.
The government’s failure to hold Provincial Council elections is particularly troubling. The provincial council system is the only one that can provide the Tamil people and other ethnic minorities the opportunity to wield political power and exercise a measure of self-determination in the areas in which they are the numerical majority. The continued postponement of Provincial Council elections therefore has consequences that go beyond an ordinary electoral delay. It deprives communities of an important constitutional avenue for democratic participation and power-sharing. The ethnic and religious minorities appreciate what the government is doing in the larger national interest, but they must not be made to feel that their special concerns are being ignored. The government cannot resolve Sri Lanka’s entire legacy of rights violations overnight. But it does need to demonstrate that it is willing to move forward on multiple fronts, not only on a few.
Features
The emptying university: why are academics leaving?
by Hasini Lecamwasam
Brain drain in Sri Lanka is at an all-time high. The latest Human Flight and Brain Drain Index for 2024 shows that we are 16th of 175 countries on this count, and first in South Asia. That this is a crisis goes without saying. Brain drain affects all sectors, and is a huge strain on the resources of a developing country. Particularly in Sri Lanka, where considerable public investment is made in the moulding of professionals through the system of free education, this amounts to transferring the resources of poorer countries to richer ones with top migration destinations. It is, therefore, important to consider the push and pull factors behind skilled outmigration, specifically from the public university system of Sri Lanka, a key focus of the Kuppi column.
From frustration to exit
Several bitter realities in our crumbling public university system act as push factors in the migration decisions of academics. Many essays on this column have, over several years, attempted to highlight numerous aspects of this erosion. Perhaps, primary among them is the lack of adequate funding, which has debilitating ramifications for the system: very little investment is made in the up-keep of infrastructure (and even less in its expansion), resulting in serious constraints in accommodating growing batches of students and the wellbeing of the staff (particularly in regional universities); research funding is negligible, severely curtailing academics’ ability to effectively discharge their primary duty of teaching which should ideally be informed by their research (and the research of others, access to which is also, unfortunately, mediated by funding); a funding crunch also means a slash in (or greater constraints on) recruitments, increasing the workloads of academics, currently in service, and eating into the quality of their teaching and research.
What recruitments are done frustrate those with any faith in merit. As many of our interventions in this column have shown, recruitment processes are characterised by archaic selection criteria that place very little weight on a candidate’s postgraduate growth and the advantages of interdisciplinary training. Added to this is the general preference for ‘culturally compliant’ candidates who would not rock the boat too much. The combined effect is that those with the capacity and spirit to try out innovations in education are discouraged from joining or staying on in the public university system. Some, or many, of them may instead seek appointments abroad.
A thread that binds all of these problems together is pervasive hierarchy which, again, many interventions on this column have sought to highlight. It is the interest in preserving hierarchy that leads to the preference for alumni in recruitment processes. Hierarchy within universities can be particularly frustrating for younger faculty and women, who typically have to bear the brunt of the workload of their senior, often male, colleagues. In a context of funding, and, therefore, recruitment, restrictions, this translates into a disproportionate burden being placed on junior (usually female) faculty, seriously hindering their prospects of growing into successful academics due to the time constraints within which they have to operate. Junior academics, therefore, are more likely to look to educational institutions abroad for what they hope would be a different work culture that respects them more.
Ideological ruses
On top of these structural frustrations are also the workings of neoliberal ideology. For one, the nature of relations between the global metropole and peripheral countries like Sri Lanka largely dictates what is desirable and what is not. The apparent lifestyles of Western countries – from food to clothing, housing, appliances, and so on – have continued to lure people from the periphery with the promise of a ‘better’ life, alongside better career advancement opportunities. This, of course, masks much of the struggle that goes on behind the scenes to survive in Western societies. For instance, in most cases highly attractive public infrastructure such as roads, public transport, clean air, quality control of food, and so on belie the astronomical privatised costs of healthcare and education. Health insurance is usually mandatory and steep in most high-income settings, while even subsidised education (for which eligibility criteria are strict) creates a serious dent in household earnings. Of course, the happy images of glossy trams and gleeful international travellers don’t convey this.
A second ideological ruse is the myth of greater opportunities and recognition abroad. While there is no denying that local skilled sectors – be it higher education, health, civil service, or private white-collar positions – are replete with issues that inhibit merit-based professional advancement, the notion that things are fundamentally different in Western countries stems from an uninformed optimism. As is now increasingly known and discussed, Western labour markets are notoriously racialised, and equivalent skills are rarely treated as such. Instead, it is usually demanded that skilled migrants clear certain formal examinations in their host countries. In fields like medicine, this is followed by an interview that may also be racially prejudiced. Once these initial steps are cleared, remuneration reverts to square one irrespective of experience accumulated abroad, not to mention the many subtle aggressions, rejections, and trials one has to go through in the negotiation of everyday life. In the many cases where professional qualifications are used as leverage for a move abroad, sights are set on a better future for one’s children, which again is informed by the misplaced faith in greater opportunities and a lack of awareness of the factors outlined above. Needless to say, in the global swing to the Right, things have become even more challenging. In such a context, considering the few rare cases where skilled migrants live extremely comfortable lives as the norm becomes a dangerous misconception.
The two ideological pull factors mentioned above are complemented by a push factor, which has to do with a highly classed understanding of what a white-collar professional is due in their society. Many of these aspirations are clearly articulated in academic trade union action demanding separate quotas for school entry, increased fuel allowances, winning back the presently stalled vehicle permit scheme, salary hikes, and so on. While working people have every right to agitate for better material conditions, insofar as it remains unconnected to a broader movement for improving the conditions of the lot of the working class, it remains self-serving and very much within the class logic of capitalist society. Since these demands are articulated as a means of maintaining distinction, it is clear that they are not envisaged as part of a class movement. The frustration of not having these needs for distinction satisfied may push some to seek greener pastures abroad, at least financially, (perhaps as a means of social mobility based on it), only to be disappointed on most occasions.
What is to be done?
Addressing the systemic push factors listed above requires, first and foremost, greater allocations for free public higher education. This would immediately translate into more recruitments and less work per academic, and better research and teaching in the long haul. An increase in funding would also ideally lead to greater infrastructural investments, especially including improving the living conditions of those who work in regional universities amid untold hardships. Next, fairer, more creative, and, therefore, more effective recruitment policies are badly needed to attract talented individuals to university positions. Rather than carving out a ‘special category’ for academics to achieve this purpose, which is informed by a classed logic, this needs to be done through fundamental reforms in recruitment processes. Third, a persistent attack on the entrenched hierarchy within universities through internal reform is much called for. Reforming recruitment practices will go a long way towards addressing this. Measures should also be taken to introduce more stringent policies against SGBV (not to mention ragging, even though it is not directly connected to brain drain). Such measures would create a safer, fairer, and more attractive workplace, which would give more reasons for people to stay.
On top of greater allocations, we also need a transformation of our aspirations themselves if this situation is to change. That necessitates a kind of education capable of questioning the ‘paradise’ conception of Western societies, and lays bare their colonial material and ideological dimensions, in both their historical and contemporary manifestations. These colonial understandings of the ‘good life’, moreover, have devastating ecological implications for the planet, not to mention social justice. An education with the ability to transform this mindset would hopefully prove to be more than a mere path to social mobility, rather being a tool of social emancipation that renders mobility moot.
(Hasini Lecamwasam is with the Department of Political Science, University of Peradeniya)
Kuppi is a politics and pedagogy happening on the margins of the lecture hall that parodies, subverts, and simultaneously reaffirms social hierarchies.
Features
Friends favourite Suzi Croner returns for Oktoberfest 2026
Charming audiences in Switzerland as Suzi Flückiger, Sri Lanka’s own Suzi Croner is coming home… for a very special occasion.
The bubbly former frontline vocalist of 90s band Friends will take the stage at a popular venue in Colombo for Oktoberfest 2026.
Known in Europe for her country and classic hits, Suzi has remained a much-loved name back home. This will be a rare chance for local fans to see her live and celebrate the voice behind so many Friends memories.
Oktoberfest 2026 in Colombo promises an evening of live music, traditional Bavarian food and beer, colourful dirndls and lederhosen, folk dancing, and plenty of community cheer.

Suzi Croner (Flückiger)
Against this lively backdrop, Suzi will take the stage for a special solo set, featuring her own pre-recorded music. She performed at the event last year too, as a solo artiste, but a German band providing the music.
This year, however she says, it’s a different scene.
“The novel attraction will be the dancers from Germany — all girls, clad in German outfits,” Suzi said. She added that the event will also highlight the activities generally connected with Oktoberfest, which should generate a lot of fun and excitement for those who join her in Colombo next month.
Suzi has become a much-in-demand artiste in Europe, and has even performed Down Under, in Melbourne.
In Switzerland, where she has been based for the past 42 years, she continues to charm audiences with country and classic hits, performing at private events and community nights across Europe.
“My weekends are generally loaded with my work as a singer,” she said. “And I also play tennis three times a week, because I need to keep fit to entertain my audience in an active way.”
Her repertoire is made up mainly of Swiss, German and English songs.
And true to form, Suzi loves springing surprises.
“So watch out when you join me at Oktoberfest 2026, in Colombo!” she said.
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