The United National Party (UNP) has addressed recent claims regarding the Hambantota oil refinery project, which the National People’s Power (NPP) government reportedly signed for US$3.7 billion. The UNP clarified that the original agreement for the refinery was signed during their administration for US$4.5 billion and highlighted the circumstances leading to the transition of the project to China’s Sinopec.
The UNP explained that the initial agreement for the Hambantota Greenfield Oil Refinery, signed in March 2019, involved a consortium comprising Singapore’s Silver Park International (Private) Ltd, controlled by India’s Accord Group, and Oman’s Ministry of Oil and Gas. The agreement, valued at US$3.85 billion, outlined plans to develop a refinery with a capacity of 200,000 barrels per day on a 585-acre site in Mirijjawila, Hambantota. The consortium held a 70% stake through Silver Park International, with Oman controlling the remaining 30%. It was hailed as the largest single foreign direct investment in Sri Lanka’s history.
The project, launched with a groundbreaking ceremony on March 24, 2019, attended by then-Prime Minister Ranil Wickremesinghe, was expected to generate annual export earnings of US$7 billion and create thousands of jobs. However, delays in construction led to the termination of the agreement with Silver Park International in late 2023.
Subsequently, in November 2023, the project was reassigned to China’s Sinopec through a new agreement valued at US$4.5 billion, maintaining the same project objectives. The UNP emphasized that this agreement was a continuation of the groundwork laid during the Wickremesinghe administration, with Kanchana Wijesekera serving as the Minister of Power and Energy at the time.
The party expressed concerns over what they described as misrepresentations by the NPP government regarding the project, noting that the initial proposal and foundation were crucial diplomatic and economic achievements under President Wickremesinghe’s leadership. The UNP further asserted that the original contract’s termination and the subsequent transition to Sinopec should be viewed as a continuation of efforts to stabilize Sri Lanka’s economy.
The UNP reiterated the importance of acknowledging the contributions of the previous government in conceptualizing and initiating such large-scale economic projects, urging that their efforts to safeguard and enhance the country’s economy not be overlooked.
