Sri Lanka (Commonwealth) _ Chinese Sinopec group funded a project of a state-of-the-art oil refinery with a capacity of 200,000 barrels, which is set to be built in the Hambantota region, and President Anura Kumara Dissanayake‘s recent state visit to China will open doors for approximately US$10 billion in investments from Chinese businesses to Sri Lanka.
On January 14–17, 2025, Sri Lankan President Anura Kumara Dissanayaka, the leader of the National People’s Alliance (NPP), wrapped up his tour of China, which was scheduled at the invitation of Chinese President Xi Jinping.
In the Great Hall of the People, President Xi greeted President Dissanayake on January 15, 2025. Cooperation in international forums, investment, tourism, digital transformation, and enhancing commerce and the economy were just a few of the many issues that the two presidents covered.
Both presidents reiterated their resolve to strengthen their bilateral relationship on the foundation of peaceful coexistence and sovereign equality.
He also spoke with Zhao Leji, the chairman of the National People’s Congress of China’s Standing Committee, and Chinese Premier Li Qiang about potential areas of future collaboration.
The two parties exchanged fifteen memorandums of understanding (MoUs) during the state visit. They issued a joint statement with the Sinopec Group about a US$3.7 billion, export-focused petroleum refinery in Hambantota.
Senior officials from Chinese companies and state-owned enterprises (SOEs) attended the roundtable on “Invest in Sri Lanka,” where President Dissanayake also delivered a speech. President Dissanayake spoke at the Investment Forum, outlining the overarching vision that directs Sri Lanka’s economic policies and outlining important sectors where the corporate community may be interested in investing in Sri Lanka.
According to the President’s Media Division (PMD), prominent Chinese SOEs who attended the Forum indicated an interest in expanding their current investment projects in Sri Lanka as well as bringing in new ones.
A source claims that the Chinese businesses that participated in the investment forum are prepared to invest up to $10 billion USD in Sri Lanka across a range of industries, including construction, energy, and auto manufacturing.
China Communications Construction Company Ltd. (CCCC), China Petrochemical Corporation (SINOPEC Group), Metallurgical Corporation of China Ltd (MCC), Huawei, and BYD Auto were some of the well-known businesses that participated in these talks.
President Xi Jinping welcomed Anura Kumara Dissanayake of Sri Lanka to travel to China for four days. Since taking office in September of last year, he has made two foreign trips, the first of which was to India. According to the President’s Office, the visit, which takes place from January 14 to January 17, is intended to strengthen bilateral ties and investigate potential avenues for cooperation between the two countries.
Key Observations of the Sri Lankan President’s Trip to China
· Sinopec struck an agreement to spend US$3.7 billion on a 200,000-barrel capacity, state-of-the-art oil refinery in Hambantota. It will increase Sri Lanka’s foreign reserves. It will increase foreign exchange revenues because its produce is intended for export.
· The creation of an Investment and Economic Cooperation Working Group, market access for agricultural products to China, cooperation on media and tourism promotion, and a gift of RMB 500 million (Rs. 20 billion) from the Chinese government for economic and technical cooperation.
· Assisting Sri Lankan businesses in the gem, tea, and other sectors in connecting with pertinent Chinese importer and exporter associations. It will increase the nation’s export revenue.
· The two countries will continue to assist one another in organizing tourism promotion events in China and Sri Lanka. • China is prepared to participate in training and demonstration programs with Sri Lanka in areas such as aquaculture, plant breeding and cultivation, and biotechnologies for tropical crops to help Sri Lanka increase its capacity for sustainable agricultural development.
· The two parties will keep helping one another with events that promote travel to China and Sri Lanka. It will assist increase Sri Lanka’s tourism revenue.
· Two nations will keep working together in the maritime sector. It will contribute to the growth of Sri Lanka’s blue economy.
· Both nations committed to moving forward with all significant flagship projects, such as the combined development of Hambantota Port and Colombo Port City. It will improve Sri Lankan investments, which would ultimately raise people’s earnings.
· Chinese businesses are looking to invest heavily in Sri Lanka.
· 15 MoUs were inked between the two parties.
