China's Sinopec has reached an agreement to build a $5 billion oil refinery in Sri Lanka's Hambantota district, according to the country's Prime Minister, Dinesh Gunawardena. The project is part of China's commitment to enhance the development of Sri Lanka's Hambantota port and Colombo airport. China, being Sri Lanka's primary bilateral creditor, has also pledged to support the country in restructuring its external debt. The tender for Sri Lanka's proposed $4 billion oil refinery in the investment zone near the Chinese-built Hambantota port will be awarded within three weeks, with China's Sinopec and Vitol Asia shortlisted as potential bidders. This development highlights Sri Lanka's efforts to establish an oil refinery and strengthen fuel import agreements with China. The project is expected to boost the country's energy sector and contribute to economic growth. It is worth noting that Sri Lanka has insisted that its ports will not be used for military purposes, addressing concerns from India and the United States about China's foothold in Hambantota and its potential impact on the naval balance in the Indian Ocean. The agreement for the oil refinery project will be submitted to the cabinet for consideration, and Sri Lanka is providing state land for the project. In addition, Sri Lanka is awaiting assurances from other official creditors to proceed with its debt restructuring program. The budget for 2024, aimed at boosting revenues and growing the economy by 1.8%, has been passed. Sri Lanka stocks closed down on Tuesday. [c88de8bf] [2c59ea72] [9d537b06]