China’s Sinopec charts global expansion with refinery in rival India’s backyard -Reuters

Chinese state energy giant Sinopec is pushing for greater access to Sri Lanka’s market, where rival India is also seeking to expand its presence, as it looks to build its first fully-controlled overseas refinery, reflecting a change in the firm’s global strategy to compensate for slowing demand growth at home.

Sinopec, the world’s largest oil refiner, is expected to complete a feasibility study by June for a plant at the Chinese-run Hambantota port, after winning Colombo’s approval last November, two senior industry sources with direct knowledge of the matter told Reuters.

While the China-based sources say the investment, which Colombo pegged at $4.5 billion as the country’s largest-ever foreign investment, is commercially driven, neighbouring India is pushing a rival plan to build a fuel products pipeline to the island nation southeast of the subcontinent.

Sinopec’s effort to build a refinery with a more domestic orientation rather than the export-focused project sought by Sri Lanka, which has not previously been reported, puts it in direct competition with India’s interests in expanding its role as an energy supplier to the country. New Delhi-run Indian Oil Corp is the No.2 fuel supplier to the country, after Sri Lankan government-owned Ceylon Petroleum Corp.

India’s foreign ministry and Indian Oil Corp did not respond to requests for comment.

Sinopec, which has not publicly spelled out its strategy, is prioritising the Sri Lanka investment and another in Saudi Arabia under a newly launched investment arm, in an effort to leverage its expertise and deep pockets to expand globally as oil demand nears its peak in China as economic growth slows and electric vehicle adoption widens, the sources said.

Sinopec’s efforts mark a new trend in Chinese oil and gas investments abroad after mergers and acquisitions dried up to just $344 million in 2023, a fraction of the record $31 billion in 2012, according to LSEG data, following the 2014/15 oil price collapse and as Beijing tightened scrutiny over the finances of its national oil giants.
Sinopec is working to finalise details including the plant’s size and product configuration, while negotiating with Colombo over terms including greater access to the import-reliant Sri Lankan market, an element key for its final investment call, the sources said.

The south Asian nation, grappling with a dearth of foreign exchange, has sought a refinery that would deliver 20% of its fuel domestically and export the rest to generate much-needed hard currency.

Sri Lanka’s power and energy minister, Kanchana Wijesekera, told Reuters on Friday that the government is sticking to that requirement.

Sinopec, however, believes domestic sales would be more profitable, the two sources said, declining to be identified as the matter is not public.

The company is considering either a 160,000 barrel per day (bpd) plant or two 100,000-bpd plants built in phases, which in either case would be geared towards gasoline and diesel fuel, the sources said.

Sinopec declined comment.

FULL CONTROL

Sinopec sees Hambantota as among its top-priority projects, alongside a multi-billion-dollar plan to expand a refinery into a petrochemical complex at the Red Sea port of Yanbu in a joint venture with state-run Saudi Aramco, the two sources said.

Compared to its half-owned, higher-cost Yanbu plant built a decade ago and designed to supply the U.S. market, Sinopec could fully leverage its expertise in refinery design, engineering and operation in the Hambantota venture and thus cap overall costs.

Sinopec has in recent months sought more flexible terms for the project’s domestic marketing share but Colombo has not budged.

Sri Lanka’s only existing refinery, the 38,000 bpd Sapugaskanda plant commissioned in 1969, supplies less than 30% of its fuel needs.

Minister Kanchana told Reuters he expects Sinopec to sign an investment agreement by June.

CHINA VS INDIA

China and India are increasingly vying for influence in Sri Lanka.

In 2022, India funnelled in about $4 billion of assistance during Sri Lanka’s worst financial crisis in decades.
Since last year, New Delhi has proposed various energy “connectivity” projects including a $1.2 billion subsea power line and a fuel pipeline linking India with Sri Lanka’s Trincomalee port on the east coast, Sri Lanka Power and Energy Ministry Secretary Sulakshana Jayawardena said in late February.

India is also deepening its involvement in Sri Lanka’s power sector with solar projects and grid connectivity.
“Their dependency on China is not there in energy supplies,” said an Indian official directly aware of the pipeline discussions, declining to be identified because he is not authorised to speak with media on the subject.

“That is a sector where we have a significant stake. That will increase with the pipeline,” the Indian official said, adding that there has been significant progress on discussions for the multi-product pipeline, with the two sides seeking to formalise the arrangement “as soon as possible”.

China is a comparative latecomer to Sri Lanka but has since 2010 ploughed $6.7 billion into building the Hambantota port, highways and the country’s only coal power plant in Norochcholai.

At Hambantota, state-owned China Merchants Group owns 85% of port operator Hambantota International Port Group under a 99-year lease and earlier this year agreed a $392 million deal to build a logistics and storage hub in Colombo port under Beijing’s sprawling Belt & Road Initiative.

Last September, Sinopec started a fuel import and distribution business in Sri Lanka with 150 petrol stations, sourcing fuel mostly from Singapore, which Colombo expected to save the government about $500 million in foreign exchange over the next two years.

Top Chinese Communist Party Delegate to Visit Sri Lanka

Vice Minister of the International Department of the Chinese Communist Party Sun Haiyan is scheduled to arrive in Sri Lanka today.

According to The Thinakaran Newspaper Vice Minister of the International Department of the Chinese Communist Party Sun Haiyan will arrive in Sri Lanka today on a two-day official visit.

During this visit, she is scheduled to hold discussions with high-ranking government officials, including President Ranil Wickremesinghe and Prime Minister Dinesh Gunawardena.

Sri Lanka president to contest election under independent party symbol: UNP

Sri Lanka President Ranil Wickremesinghe will be next to an independent symbol on the ballot paper, according to United National Party (UNP) general secretary Palitha Range Bandara.

Bandara told reporters that the ruling Sri Lanka Podujana Peramuna (SLPP) will have its symbol, the lotus bud, on the ballot if the party decides to contest.

He was responding to a question about a comment SLPP parliamentarian Namal Rajapaksa had made that the lotus bud would definitely appear on the ballot paper no matter what.

“If the SLPP contests, their symbol will be there on the ballot paper. Mr Ranil Wickremesinghe will be contesting under an independent symbol, so for us there is no issue of a lotus bud being there,” he said.

Bandara also reiterated that the presidential election will definitely be held this year, despite speculation to the contrary.

“We’re getting ready for a presidential election. The election commission is ready for a presidential election. No matter who makes what request, a parliamentary election can only be held in 2025, not 2024. According to the constitution, the presidential election must be held on time, so it definitely will be,” he said.

Main opposition Samagi Jana Balawegaya (SJB) MP Rohana Bandara speaking to reporters said the government has been resorting to various tactics to delay the election.

“The SJB will provide leadership to mobilising people against any attempt to postpone the presidential election,” he said.

Meanwhile, SJB legislator Field Marshall Sarath Fonseka, who has publicly criticised the party leadership, told reporters that a presidential election has not yet been declared. If someone is declaring their candidacy prematurely, he said, that betrays a fear and insecurity of someone else taking their place.

He added that Sri Lankans must move on from the culture of politicians giving things away during election cycles.

“Or they can accept the things being distributed and say ‘thanks for this, but we’re not going to vote for you just because you gave us something’,” he said.

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Tight security during Iranian President’s visit to Colombo

Tight security will be in place during Iranian President Dr. Ebrahim Raisi’s visit to Colombo this week.

The Foreign Ministry said that Dr. Ebrahim Raisi is scheduled to make an official bilateral visit to Sri Lanka at the invitation of President Ranil Wickremesinghe to jointly declare open the Uma Oya Multipurpose Development Project on 24 April 2024.

The Uma Oya Multipurpose Development Project, funded by Sri Lanka and Iran, is designed to generate and add 120 Megawatt electricity to Sri Lanka’s national grid and provide irrigation to approximately 25,000 acres of paddy lands in the south eastern part of Sri Lanka.

The visit comes as tensions continue between Iran and Israel with Israel saying it will respond to Iran’s recent drone and missile attack as the threat of open warfare between the countries looms.

Iran launched over 300 missiles and drones at Israel in response to an attack launched by Israel on an Iranian embassy in Syria.

Back in August 2023, Sri Lankan Foreign Minister Ali Sabry visited Iran and met with his Iranian counterpart Hossein Amir Abdollahian in Tehran. During a joint press conference, the top Iranian diplomat called the visit “a turning point in Iran-Sri Lanka ties”.

President calls on Chief Prelates of Malwatu and Asgiri chapters

President Ranil Wickremesinghe called on the Chief Prelates of the Malwathu and Asgiri Chapters yesterday (21) to seek their blessings.

First, President Ranil Wickremesinghe visited the Malwathu Maha Viharaya and paid his respects to the Chief Prelate of the Malwathu Chapter, Most Ven. Thibbatuwawe Sri Sumangala Nayaka Thera, followed by a brief discussion. The Anunayake of the Malwathu Chapter,

Most Venerable Dimbulkumbure Vimaladhamma Thera, was also present, and together they chanted Seth Pirith and blessed the President.

Thereafter, President Ranil Wickremesinghe preceded to the Asgiri Maha Viharaya, where he met with the Chief Prelate of the Asgiri Chapter, Most Ven. Warakagoda Sri Gnanarathana Thera, and engaged in a brief discussion.

During the visit, the Maha Sangha led by the Viharadhipathi (Chief Priest) of Muthiyangana Raja Maha Vihara, Ven. Murundeniye Dhammarathana Thera recited Seth Pirith and invoked blessings upon the President.

Kandy District Secretary Chandana Thennakoon also attended the event.

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‘Shree Ramayan Trails’ launched in Sri Lanka to boost tourism

A historic milestone in the Indo-Sri Lankan cultural and religious bond was marked yesterday (21) with the official launch of the ‘Sri Ramayan Trails’ project at Taj Samudra in Colombo, the President’s Media Division (PMD) reported.

This initiative aims to bolster the country’s tourism industry by leveraging cutting-edge technology and innovative tourism methodologies, it said.

Under the auspices of His Holiness Swami Govind Dev Giri Maharaj, the Chief Treasurer of the renowned Sri Ram Mandir in Ayodhya, and graced by Mr. Sagala Ratnayaka, Senior Advisor to the President on National Security and Chief of Presidential Staff, the launch event showcased a commitment to fostering deeper ties between the two nations, the PMD said.

The Sri Ramayan Trails seeks to highlight nine significant sites mentioned in the epic Ramayana, scattered across Sri Lanka. By offering a spiritual and cultural journey for Hindu pilgrims and travelers alike, the initiative aims to draw millions of Indian and international tourists to the country. Its overarching goal is to strengthen the nation’s spiritual and cultural heritage while also boosting its tourism sector.

In addition to offering access to these sacred sites, the project aims to provide visitors with an immersive experience by showcasing the ancient spiritual events associated with these revered shrines, brought to life through cutting-edge technologies like Artificial Intelligence (AI), Augmented Reality (AR), and Virtual Reality (VR).

Spanning from Adam’s Bridge in the Mannar Basin to Seetha Eliya in Nuwara Eliya, every location mentioned in the epic Ramayana has been carefully chosen for inclusion in this pilgrimage endeavour.

Notable figures such as former Speaker Karu Jayasuriya, Indian High Commissioner HE Santosh Jha, former member of the European and British Parliament Niranjan Dev Adhitya, and other dignitaries graced the event with their presence.

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SJB demands to know who occupied rooms 616 and 623 while Zahran was on 6th floor

SJB spokesperson Mujibur Rahman on Sunday (21) alleged that attempts were being made to hide the identities of persons whom two Easter Sunday suicide bombers–– ringleader Zahran Hashim and his accomplice Ilham Ahamed, who blasted themselves at the Shangri-La Colombo on the morning of April 21, 2019––had met in the same hotel the previous day.

Addressing the media at the Opposition Leader’s Office, the former Colombo District UNP MP said that the two suicide bombers had stayed at a room on the sixth floor, on the night of 20 April.

At the time of the suicide blasts, Rahman was a member of the ruling UNP-led Yahapalana administration (2015-2019).

Rahman, who previously represented the UNP in Parliament, said he had got to know that the hotel refrained from disclosing the identities of those who occupied the room before Hashim and Ahamed moved in on the night of April 20, 2019.

The SJB official said that they got to know about the hotel’s failure to reveal the names of the guests after having examined the proceedings of the ongoing High Court of Colombo case that dealt with the Easter Sunday carnage.

Ilham Ahamed’s brother Mohamed Ibrahim Inshaf Ahamed carried out the suicide blast in the Cinnamon Grand hotel. Responding to The Island queries, Rahman said that comparison of Hashim’s DNA samples with that of his wife and daughter, apprehended a week later, following a confrontation with the Army at Sainthamaruthu, proved beyond any doubt that the ringleader had been killed in the Shangri-La blast.

According to Rahman, a comprehensive list of those who had stayed at the Shangri-La Colombo, during the period of two weeks before the day of the blasts, had been submitted to the Colombo High Court, sans information pertaining to room number 616.

Spice merchant Mohamed Yusuf Ibrahim is the father of Ilham Ahamed and Mohamed Ibrahim Inshaf Ahamed. His daughter-in-law detonated herself, killing three police personnel during a raid on their luxurious Dematagoda residence.

Rahman told the media briefing at the Opposition Leader’s Office that the identities of those who had stayed in another room, also on the sixth floor of Shangri-La hadn’t been revealed to the Colombo High Court.

Emphasising the responsibility on the part of the Wickremesinghe-Rajapaksa government to reveal the truth, the ex-lawmaker said that those who stayed at room numbered 623, too, seemed to have been involved with the Zahran Hashim’s group. Rahman later told The Island that the Shangri-La management had prepared a comprehensive list of all guests at the hotel at the time of the blasts leaving out those who had stayed at 616 and 623 on the night of April 20, 2019. “We believe that there were some foreigners in room 623 whereas Zahran Hashim’s accomplices in Room 616 were a mystery,” the ex-MP said.

Rahman said that the government or perhaps the Attorney General’s Department owed the public an explanation as to why two senior retired police officers, Senior DIG Ravi Seneviratne and SSP Shani Abeysekera, who the spearheaded investigations into the Easter Sunday carnage, had not been listed as witnesses. Similarly, DIG Nalaka de Silva, who headed the Terrorist Investigation Division (TID), which had been tasked with inquiring into the clandestine activities of the National Thowheed Jamaath (NTJ), during Yahapalana regime, in the run-up to the Easter Sunday blasts, had also been left out of the list of witnesses, Rahman said.

The former lawmaker recalled the circumstances under which the CID arrested de Silva over unsubstantiated allegations pertaining to an alleged conspiracy to assassinate the then President Maithripala Sirisena and wartime Defence Secretary Gotabaya Rajapaksa, on Oct 25, 2018, the day before President Sirisena sacked the then Premier Ranil Wickremesinghe.

At the time of the Easter Sunday blasts, de Silva had been behind bars; he was granted bail in May 2019.

The former TID head now serves as DIG Puttalam.

The ex-MP urged the government to come out clean during a three-day parliamentary debate on the Easter Sunday attacks, scheduled to be held this week (Wednesday to Friday).

Ex-MP Rahman claimed that inquiries made by his party revealed that there was a certain category of people who could have booked hotel rooms without being registered. Among them were diplomats, their security contingents, Defence personnel and members of intelligence services. It would be the responsibility of the government to set the record straight. The ex-MP said that the government could correct him if he was wrong.

Rahman said that the desperate bid to hide the identities of those who met the suicide bombers at Shangri-La underscored their belief that there was an influential and very powerful hand behind the Easter Sunday attacks.

Rahman reiterated SJB and Opposition Leader Sajith Premadasa’s recent declaration that a through investigation would be conducted into the Easter Sunday carnage if the SJB won the upcoming presidential election.

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Anura Kumara gives date for debate with Sajith

The National People’s Power (NPP) has officially notified the Samagi Jana Balawegaya (SJB) yesterday that they are prepared to hold the proposed debate between NPP leader Anura Kumara Dissanayake and SJB leader Sajith Premadasa on one of the following days: May 7, 9, 13, or 14.

In a letter sent by NPP executive member Dr. Nalinda Jayatissa, to SJB General Secretary Ranjith Madduma bandara yesterday afternoon, it was emphasized that without a set date for the debate, misunderstandings may arise among the public.

The NPP requested the SJB to promptly inform them if they do not agree to the debate.

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Catholic Church to go to UNHRC seeking international probe

The Catholic Church is planning to present a proposal to the United Nations Human Rights Council (UNHRC) through several foreign governments and international organizations to initiate an international investigation into the Easter Sunday terrorist attacks with a view to mete out justice to the victims of those attacks.

Archbishop of Colombo, His Eminence Cardinal Malcolm Ranjith revealed this to the BBC Sinhala Service yesterday in a statement marking the fifth anniversary of the terrorist attacks which took place on April 21, 2019.

He accused the past and the present governments that they have failed to reveal the conspiracy behind the Attacks or the masterminds of it, despite five years having lapsed.

In the context of former President Gotabaya Rajapaksa having failed to keep his verbal promise to mete out justice to the victims, now he has reposed trust on the written pledges given by the Samagi Jana Balawegaya (SJB) and the Jathika Jana Balawegaya/ National People’s Power (NPP) on the matter, Cardinal said.

He pointed out that Ranil Wickremesighe who was the Prime Minister at the time of the Easter Sunday mayhem is the President of the country now, the then DIG for the Colombo North Deshabandu Tennakoon who was described by the Presidential Commission on the terrorist attacks to have acted as a mere messenger, without delivering his duties is the Inspector General of Police (IGP) today and the Nilantha Jayawardena, the then SIS director who failed to prevent the carnage, despite prior warnings by the Indian intelligence services is the second in command in the Police Department today.

He questioned whether one can expect justice under such a situation.

Iranian President to visit Pakistan, Sri Lanka

The Iranian president is set to visit Islamabad on Monday (22) responding to an official invitation from his Pakistani counterpart.

Leading a delegation of high-ranking economic and political officials, Ebrahim Raisi aims to strengthen bilateral ties between the two nations.

Upon concluding his visit to Pakistan, Raisi will embark on a one-day journey to Sri Lanka, following an official invitation from President Ranil Wickremesinghe.

The highlight of his Sri Lankan visit will be the participation in the opening ceremony and official inauguration of the Uma Oya Multipurpose Project, alongside the Sri Lankan President.

The Uma Oya Multipurpose Project, featuring two dams and a 120-megawatt power plant constructed by Iranian contractors, is hailed as one of Sri Lanka’s largest civil engineering endeavors, valued at approximately $500 million.

The purpose of the project is to improve irrigation of 5000 acres of agricultural land, transferring 145 million cubic meters of water and generating 290 GW/h of power in a year.

With financing provided by the Sri Lankan government, over 400 Iranian engineers have played a pivotal role in its implementation, contributing from consultation and design to execution.

Back in August 2023, Sri Lankan Foreign Minister Ali Sabry visited Iran and met with his Iranian counterpart, Hossein Amir Abdollahian, in Tehran During a joint press conference, the top Iranian diplomat called the visit “a turning point in Iran-Sri Lanka ties.”