Sri Lanka’s refinery future takes a new twist as Sinopec shifts focus to Sapugaskanda while the Hambantota mega-refinery deal remains stuck in limbo. The move highlights growing Chinese interest in the island’s energy sector and raises questions about the future of both projects.
Although there is still no final agreement on the Hambantota refinery, Sinopec has formally submitted an expression of interest for the Sapugaskanda oil refinery, according to the Ceylon Petroleum Corporation (CPC).
CPC Managing Director Dr. Mayura Netthikumarage confirmed that Sinopec has expressed interest in Sapugaskanda, noting that the company’s strategy to explore both refinery projects simultaneously may explain the continued delays in Hambantota.
“Sinopec is now considering the second project. That may be the reason why we did not finalize the Hambantota deal. But our position on Hambantota has not changed,” Dr. Netthikumarage said.
The Hambantota refinery, originally planned as a multi-billion-dollar oil refinery and storage hub, has seen numerous delays and no concrete progress in finalizing the agreement. In contrast, Sinopec’s fresh focus on Sapugaskanda is now fueling momentum in Sri Lanka’s energy infrastructure talks.
“They may be considering both projects at the same time,” he added.
The Sapugaskanda refinery, Sri Lanka’s only operational refinery, is in urgent need of upgrades to meet the island’s rising energy demand. Sinopec’s interest in the project demonstrates its intention to expand its role in Sri Lanka’s energy sector.
While the government has welcomed the proposal, Dr. Netthikumarage cautioned that discussions remain in their early stages.
“No final decisions have been made yet, but it shows that Sinopec is committed to investing in Sri Lanka’s energy infrastructure,” he said.
