Sri Lanka to Acquire Investment in Petroleum Refinery

Sri Lanka’s geographical locational benefit between Singapore and the Middle East and the provision of a new deep-water Port in Hambantota make the island an optimum location for establishing export-oriented Petroleum and different commodity processing amenities.

Selling the nation’s prospects as a funding vacation spot in opposition to this backdrop, the Board of Investment’s efforts have resulted in a funding proposal from Hambantota Oil Refinery PVT Ltd., an affiliate firm to Sugih Energy International Pte Ltd, which is a privately-owned petroleum and coal buying and selling firm primarily based in Singapore.

The proposed funding is to arrange a petroleum refinery with a 420,000 barrels’/day capability for export markets at Hambantota, which quantities to roughly US$ 24 billion, over an interval of 60 months, making this the biggest International Direct Funding (FDI) mission thus far.

The preliminary part will contain the commissioning of the petroleum refinery with plans for the growth of a petrochemical complicated in subsequent phases. Export income envisaged upon commissioning of the refinery is predicted to be around US$ 8 – 9 billion yearly

The Board of Funding (BOI) having authorized the challenge in precept in July last year, the following interval has been utilized to acquire concurrence and approvals of all related Government Agencies and Organizations together with the Cabinet of Ministers.

With the BOI Agreement now signed, the instant subsequent step is a complete Environmental Impact Assessment (EIA) submissive with the Terms of Reference already issued by the Central Environment Authority (CEA) and different regulatory our bodies to be performed previous to the implementation of the venture. This EIA shall be augmented with a Health and Safety evaluation, which, although not obligatory, will make sure the mission is in step with trade finest practices whereas making certain the improved sustainability of the mission.

The refinery has projected demand for employment starting from medium to high-finish talent ranges (operators, technicians, graduates, engineers, chemists, and so on.) with direct employment alternatives for nearly 6,500 Sri Lankans, whereas creating additional oblique employment alternatives in help providers.