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Sri Lanka receives $3.85 billion investment to build a refinery in Hambanthota

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Sri Lanka receives $3.85 billion investment to build a refinery in Hambanthota

Mar 19, Colombo: Two massive development projects in Sri Lanka’s investment history will commence at Mirijjawila Export Processing Zone in Hambantota, Deputy Minister of Development strategies and International Trade Nalin Bandara said today (19).

Speaking at a press briefing held at the Colombo World Trade Center, the Deputy Minister said the value of these investments is US$ 3.95 million.

The two projects comprises a oil refinery complex on a 200-acre land with an investment of US$ 3.85 billion and a cement manufacturing plant on a 64-acre land with a US$ 100 million, the Deputy Minister said.

The overseas joint venture of Silver Park International Pte Ltd of Singapore and the Sultanate of Oman Ministry of Oil and Gas had committed $3.85 billion to a new oil refinery – the single largest foreign investment in the country’s history.

“Instead of the old Sapugaskanda oil refinery, this is a very good investment, and the petroleum and other companies can get oil at lower prices. This will generate direct and indirect employment,” the Deputy Minister said. He said the refinery, which will eventually produce 200,000 barrels a day, to be fully operational within four years.

The construction of the oil refinery would begin this weekend and is expected to complete in 44 months.

Deputy Minister Nalin Bandara said they were able to fully utilize the Mirijjawila Export Processing Zone, which commenced in 2004, with investments in the last three years.

“By launching these two projects, we are able to harness the Hambantota Port and the Mattala Airport efficiently and actively. Ports related products need to be produced for Hambantota port to be active. The government in cooperation with the Board of Investment is doing immense work on this,” he said.

The cement factory can manufacture cement at a rate of 3.6 metric tonnes per year. This project is expected to be completed within 18 months and it will be expected to create 10,000 direct jobs, said Mr. Mangala Yapa, Managing Director of Megapolis and Western Development Agency.

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