Sri Lanka has paved the way for a $4.5 billion investment by China in Hambantota. The town, which also houses a port that was leased to a Chinese state-owned shipping company in 2017, is at the heart of India’s concerns about growing Chinese influence in New Delhi’s strategic backyard. Mint take a look at the announcement and its implication.
What exactly was announced?
Sri Lanka’s energy minister Kanchana Wijesekera broke the news on Monday that China’s Sinopec will be awarded a contract to establish a refinery at Hambantota Port. “Cabinet approval was granted today to award the contract to China Petroleum & Chemical Corporation (Sinopec) of China, to enter into an agreement to establish a new Petroleum Refinery & Associated Product Processing center in Hambantota,” Wijesekera posted on X.
This came after the country signed an agreement with Sinopec in May for the storage, distribution and sale of…
