Sri Lanka’s Hambantota oil refinery project remains stalled with no final agreement in sight, but Chinese energy giant Sinopec has now shifted its focus toward the Sapugaskanda refinery, signaling a new direction for the island’s energy future.
Despite years of delays surrounding the multi-billion-dollar Hambantota refinery and storage complex, the Ceylon Petroleum Corporation (CPC) confirmed that Sinopec has submitted an expression of interest (EOI) for the Sapugaskanda refinery.
CPC Managing Director Dr. Mayura Netthikumarage said the company’s simultaneous consideration of both projects may explain the lack of progress on Hambantota. “Sinopec is now considering a second project, which could be the reason why the Hambantota deal has not been finalized. However, our position on Hambantota has not changed,” he noted.
The Sapugaskanda refinery, Sri Lanka’s only operational facility, is in urgent need of upgrades to meet rising energy demand. Sinopec’s renewed interest highlights its strategy to strengthen its foothold in Sri Lanka’s energy sector, following its entry into the retail fuel market last year.
While the government has welcomed Sinopec’s engagement, Dr. Netthikumarage stressed that discussions are still at a preliminary stage. “Final decisions have not been made yet, but this demonstrates Sinopec’s commitment to investing in Sri Lanka’s energy infrastructure,” he said.
For now, Hambantota remains a vision on hold, while Sapugaskanda could emerge as the new focus of China’s energy investment in Sri Lanka.
