BOI Chief signals imminent breakthrough on long-delayed Sinopec investment deal

Monday, 8 December 2025 03:34 - - {{hitsCtrl.values.hits}}

BOI Chairman Arjuna Herath – Pic by Upul Abayasekara

By Charumini de Silva

Board of Investment (BOI) Chairman Arjuna Herath said Sri Lanka is close to concluding negotiations with Sinopec on a major export-oriented investment project, with a final response from the Chinese energy giant expected within days.

Speaking during a panel discussion last week at the Sri Lanka Economic Summit organised by The Ceylon Chamber of Commerce, Herath clarified that the project stems from a tender initiated several years ago, prior to the current administration.

He said since assuming office, the Government has engaged in multiple negotiation rounds to align Sinopec’s proposal with the original tender conditions.

In January 2025, Chinese State-owned oil and gas giant China Petrochemical Corporation, commonly known as Sinopec, entered into an agreement with the Sri Lankan Government to expedite the construction of a state-of-the-art $ 3.7 billion oil refinery in the investment zone near Hambantota International Port (HIP).

The agreement includes provisions to fast-track unresolved issues related to water access, land allocation, and taxes, marking the largest single foreign direct investment (FDI) in Sri Lanka’s history.

Herath noted that while Sinopec had sought greater access to the domestic market citing shifts in global market dynamics since the original bid was submitted, the Government has maintained a firm position that it cannot deviate from the terms of the tender, which was strictly for an export-oriented facility.

“Negotiations have been completed. The final offer has gone to Sinopec. We believe we will have feedback and hopefully a confirmation within a matter of days,” he said.

Once Sinopec conveys its official position, the agreement will be submitted to the Cabinet for approval. Herath underscored that both the Government and Sinopec remain committed to finalising the deal.

Calling it a “significant investment for the country,” he said the project has the potential to be one of Sri Lanka’s largest export-oriented ventures and stressed that its successful conclusion would mark a major milestone for the new administration’s investment push.

“We expect this to happen before the end of the year,” Herath added, reaffirming confidence that the long-delayed project is now nearing closure.