BEIJING:  , Sri Lanka has secured its biggest-ever foreign investment after signing a deal with Chinese state-run oil giant Sinopec, officials said on Thursday ( Jan 16 ).
China has agreed to invest US$ 3.7 billion to construct a” state-of-the-art oil plant” with a capacity of 200, 000 containers in the southeastern Hambantota area, according to the Sri Lanka government’s advertising section.
” During President Anura Kumara Dissanayake’s four-day state visit to China, Sri Lanka marked a significant milestone by securing the largest foreign direct investment to time”, it said.
A” large section” of the refinery’s result would be earmarked for export as part of work to shore up Sri Lanka’s foreign trade revenue, a statement said.
This significant funding from China is anticipated to boost Sri Lanka’s economic progress while enhancing the lives of low-income residents in the Hambantota region, it added.
After Sri Lanka was unable to recover a sizable Foreign product, the harbor of Hambantota was given to a Beijing business on a 99-year contract worth US$ 1.12 billion in 2017. This controversial decision raised questions about Chinese investments in the nation.
In 2022, Sri Lanka likewise defaulted on its international loans as a result of a crisis that led to decades of food, fuel, and medical scarcity.