Home Sri Lanka Citing ongoing procurement: Details on USD 3.7B Sinopec refinery withheld
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Citing ongoing procurement: Details on USD 3.7B Sinopec refinery withheld

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The Ministry of Energy has stated that it cannot disclose information regarding the proposed USD 3.7 billion Sinopec Oil Refinery in Hambantota, as the procurement process for establishing an export-oriented petroleum refinery and product-processing centre in the area is still ongoing.

The Ministry emphasised that responses to questions — including the contents of the Memorandum of Understanding (MoU) — cannot be provided until the procurement process is finalised.

This refusal came in response to a Right to Information (RTI) application submitted by Ceylon Today under reference number ADM/7/5/4, dated 31 July 2025. The Ministry cited provisions of the Right to Information Act, No. 12 of 2016, as the basis for withholding the details.

The Sinopec oil refinery project, one of the largest foreign investments in Sri Lanka’s energy sector, was initially estimated to cost USD 4.5 billion but has since been revised to USD 3.7 billion.

Additional Secretary for Human Resources C. Jayasuriya noted that the Additional Secretary for Development had informed the RTI officer that the five questions raised in the application could not be answered at this stage due to the ongoing procurement process.

The RTI application had requested updates on the project, a copy or summary of key terms, and the contents of the MoU. It also sought information on conditions or requirements set by Sinopec to commence the project, as well as policy guidelines established by the Sri Lankan Government — including land allocation, tax exemptions, regulatory clearances, and investment terms.

The application further inquired whether the Government had considered or approved Sinopec’s reported request for an additional 100 acres of land for the refinery and related facilities.

It also sought details on the expected construction start date, anticipated duration for completion and commissioning, planned refining capacity in barrels per day, total estimated investment (in USD or LKR), and whether the Government of Sri Lanka or local private entities would hold any equity or stake in the project.

(Sulochana Ramiah Mohan – Ceylon Today)

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