Amid claims of ‘confusion’ over the NPP Government being assured of a USD 3.7 billion oil refinery project while the United National Party (UNP) secured a USD 4.5 billion deal for the same project, the UNP clarified the historical and factual context surrounding the Hambantota Refinery.
The UNP explained that the USD 4.5 billion agreement came about after the ambitious project with Silver Park International was terminated by late 2023 due to construction delays. Subsequently, in November 2023, a new USD 4.5 billion deal was approved with China’s Sinopec to build a refinery at the same location.
The party emphasised that this initiative was a significant achievement under the administration of President Ranil Wickremesinghe, with Kanchana Wijesekera serving as the Minister of Power and Energy.
The UNP detailed the initial proposal and planning for the Hambantota Refinery, also known as the Greenfield Oil Refinery, which was set to be developed in Mirijjawila, Hambantota. The project was part of broader economic development initiatives, and in March 2019, an agreement was signed for a USD 3.85 billion investment — not USD 3.7 billion as recently stated by a consortium that included Silver Park International (Private) Limited of Singapore (controlled by India’s Accord Group) and Oman’s Ministry of Oil and Gas.
The deal involved constructing a refinery with a capacity of 200,000 barrels per day on 585 acres of land. Silver Park International was to hold a 70 per cent stake in the project, with Oman owning the remaining 30 per cent. At the time of signing, it was heralded as the largest single foreign direct investment in Sri Lanka’s history.
The groundbreaking ceremony took place on 24 March 2019, with Prime Minister Ranil Wickremesinghe in attendance. Construction was expected to be completed within 44 months. The project was anticipated to generate significant export revenue, estimated at USD 7 billion annually, while creating thousands of jobs in the region.
Despite the ambitious start, the project with Silver Park International was terminated by late 2023 due to delays in construction. Subsequently, in November 2023, a new USD 4.5 billion deal was approved with China’s Sinopec to build a refinery at the same location.
The UNP addressed the misattributions made by the NPP regarding this project, emphasising that the original agreement and groundwork were laid by Ranil Wickremesinghe’s administration. They stated that the cancellation and re-awarding of the project under different political circumstances should not overshadow the diplomatic and economic efforts of the previous government.
“We insist on the acknowledgement of these facts to ensure that credit is given where it is due and to maintain the integrity of our nation’s economic history,” the UNP noted in a statement. The party also reiterated this stance on X (formerly Twitter), on Friday (17).