Press briefing of Cabinet Decision taken on 2023-08-14

Agreement between the Board of Investment of Sri Lanka and Hambantota Oil Refinery (Pvt) Ltd.

- Approval of the Cabinet has been granted on 2019‑09‑17 to enter into an Agreement between the Board of Investment of Sri Lanka and Hambantota Oil Refinery (Pvt) Ltd., in order to set up a petroleum refinery at Hambantota with a 420,000 barrels capacity per day, exclusively for the export market. A land in extent of 1,200 acres has also been allocated on 50 years long term lease basis for implementing that project. However, the project proponent has not obtained the said land on lease basis and the project has also not yet been implemented. Although the project proponent has been informed several instances in writing regarding the implementation of the project, no response has been made in that regard. The proposal made by the Hon. President in his capacity as the Minister of Investment Promotion to terminate the said Agreement, since the project proponent has not acted as per the provisions of the Agreement entered into by the two parties, was approved by the Cabinet.