Professor Kithsiri Dissanayake initially praised President Anura Dissanayake for renegotiating the Hambantota oil refinery project at a lower investment cost, claiming it as a win for the country. In a social media post, the professor stated that the agreement, originally signed in 2023 under former Prime Minister Ranil Wickremesinghe for $4.5 billion, had been renegotiated in 2025 for $3.7 billion. He highlighted an advance of $800 million, attributing the success to President Anura’s leadership, and said this decision validated his vote for the President.
However, the professor later retracted his statement, admitting to an oversight in understanding the nature of the agreement. In a subsequent post, he clarified that the $800 million mentioned was part of a direct foreign investment and would benefit China, not Sri Lanka. He explained that his initial belief that the project was funded by Chinese loans was incorrect and expressed regret for his earlier remarks.
If Kanchana and Ranil had re-signed the agreement signed by 223 for $ 4.5 billion in 2025 for $ 3.7 billion, this country would have saved $ 800 million. If that is the case, Anura has given value to my vote.
My greetings Anura ..!!!
Correction
Dear everyone!
I understood that the proposed oil refinery project to be started in Hambantota was a project under Chinese loans.
It is now being referred to as a direct foreign investment by China. Accordingly, the benefit of 800 million dollars mentioned above will go to China, not us.
Therefore, I express my heartfelt regret for my previous mistake due to my ignorance.
I am grateful to those who have stoned me, those who have been scolded, and those who have corrected me. I also thank the innocent animals who have been inconvenienced and humiliated because of this. I mark this as a very important experience that I have had.
Furthermore, I am not a member or advisor of Compass. Therefore, it should be noted that no one else in Compass is responsible for the mistake made due to my ignorance. The responsibility for it lies with me.
The Hambantota oil refinery project has been a subject of political and economic scrutiny. Initially signed under Wickremesinghe’s administration, it faced delays and controversies regarding funding and execution. The renegotiated agreement under President Anura Dissanayake has reignited discussions about the benefits and drawbacks of foreign direct investment in strategic infrastructure projects.
The professor’s initial praise and subsequent clarification reflect broader concerns about transparency and public understanding of large-scale investments. While some view the renegotiation as a step toward financial prudence, others question the real benefits of such deals for the Sri Lankan economy. The incident highlights the need for clear communication and detailed analysis when discussing critical national projects.
Being a cynic, I think the difference in the two figures is due to the commission payments built into the previous higher amount.
The other thing that the RW coterie do not mention is that the idea of a Chinese led refinery in Hambantota has been floated at various times for over 20 years. Even from the Rajapaksa era. So, this didn’t first see the light of day under RW’s allegedly enlightened regime. Whether, the project could be economically viable is doubtful, with only limited volumes of products the local market can take up and thus with a import crude, export refined products unlikely to be able to compete with the huge refinery complexes elsewhere in Asia: Jamnagar in India, Exxon’s in Singapore, Several in South Korea