Reuters, September 16, 2025 report, Sri Lanka's Minister of Energy Kumara Jayakody stated that Sinopec will start the construction of a $3.7 billion refinery in Sri Lanka within 2025. The project was approved in 2023, located near Hambantota Port in southern Sri Lanka, and is expected to take three years to build, with a design crude oil processing capacity of 200,000 barrels per day. It is reported that the Sri Lankan government initially only approved 20% of the project's output for local sales, with the rest required to be exported. However, Sinopec proposed that if local market access could not be expanded, the project's feasibility and long-term sustainability would face challenges. Currently, Sri Lanka and China are in final negotiations on the proportion of local sales, and Sri Lanka is considering increasing the ratio to 40%, while Sinopec's spokesperson has not commented on this. In addition, Sri Lanka plans to invest about $3 billion in 2026 to expand the state-owned refinery near Colombo, aiming to increase its daily processing capacity from 38,000 barrels to 150,000 barrels, with the expansion project to be completed within 2-3 years. Enterprises from China, India, Qatar, and other countries have already expressed interest. A source revealed that Sinopec had already participated in the bidding information meeting for this expansion project in early September and plans to submit a letter of intent by September 26.
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