Sri Lanka has agreed to resolve issues on water, land and tax on a planned 3.7 billion US dollar oil refinery by China’s Sinopec in Hambantota, Foreign Minister Vijitha Herath said.
The new administration discussed with China and agreed to fast track the refinery which has been in the works for several years, he said.
“We said we are ready,” Minister Herath said in a late night talk show on Sri Lanka’s Derana Television Monday.
“There is a water problem. There is a requirement for more land. There is a problem with tax.
“We said we will discuss these and we signed the agreement. Within a month both sides will discuss and give solutions to the three problems and take it forward. We fast-tracked it.”
China had originally put forward the idea for a refinery in 2004, he said.
The National People’s Power still had reservations about fuel distribution being given to foreign companies including Sinopec but there were legal agreements now in place which had to be respected, Minister Herath said.