Six months after the signing of a landmark agreement, Sri Lanka’s largest-ever foreign direct investment (FDI) project—the $3.7 billion Sinopec oil refinery in Hambantota—remains stalled due to unresolved disputes over local market access, government sources revealed.  

The agreement, signed during President Anura Kumara Dissanayake’s state visit to Beijing earlier this year, involves China’s state-owned petroleum giant Sinopec constructing a state-of-the-art refinery with a capacity of 200,000 barrels per day in Hambantota. The project, expected to significantly boost Sri Lanka’s foreign exchange earnings through exports, has been hailed as a transformative investment for the nation’s economy and local employment.  

However, negotiations have hit a snag over Sinopec’s demand for unrestricted access to Sri Lanka’s domestic fuel market. 

The government has imposed a 20% cap on the company’s local sales, a condition Sinopec has contested. 

A senior Energy Ministry official, speaking anonymously, confirmed that no agreement has been reached on the market share issue, though discussions are ongoing to resolve the impasse.  

The refinery, slated to be a cornerstone of Sri Lanka’s energy infrastructure, is designed to export a substantial portion of its output, reducing the country’s reliance on fuel imports. 

The government has emphasized the project’s potential to uplift low-income communities in Hambantota while strengthening economic growth.  

Source – dailymirror.com

A recent investigation by Sri Lanka’s Ministry of Urban Development, Construction, and Housing has uncovered that the so-called ‘Presidential Palace’ in Jaffna was constructed before the government had fully secured legal ownership of the land.  

The property, consisting of eight residences, was developed during the administration of former President Mahinda Rajapaksa, while the land acquisition process was still underway. 

Urban Development Authority (UDA) Chairman Eng. L.B. Kumudu Lal confirmed the findings in an interview with weekend paper.  

“The construction of the five houses—often referred to as the ‘Presidential Palace’—was carried out before the legal acquisition process was finalized. We are now working to complete the remaining legal formalities,” Lal stated.  

The disputed land, located in Kankesanthurai, spans approximately 30 acres, with buildings occupying around 15 acres. 

The Sri Lankan military undertook the construction between 2010 and 2015, at an estimated cost of Rs. 3.5 billion.  

According to the UDA Chairman, ownership disputes are expected to be fully resolved by the end of 2025. Once cleared, the government plans to open the property to investors for redevelopment into a project that benefits the local community.  

The investigation highlights that the construction proceeded despite pending legal challenges—a process that has taken nearly a decade to resolve. However, officials remain hopeful that the remaining issues will be settled within the next year, paving the way for a more publicly beneficial use of the site.  

As the legal process nears completion, the future of the controversial property may soon shift from a symbol of political excess to a resource for Jaffna’s development.  

Another boat accident has been reported in seas off Tangalle.

According to the Sri Lanka Navy (SLN), a total of six fishermen were onboard the vessel when it met with an accident off the coast of Paravi Wella Beach in Tangalle.

Four of the fishermen have been rescued while two others remain missing.

Steps have been taken to locate the missing fishermen.

Meanwhile, three other boat accidents were reported yesterday in seas off Galle, Kalutara and Hikkaduwa.