Sri Lanka, July 3 -- The government is yet to reach any final decision on the proposed investment of US$ 3.7 billion by Chinese state giant Sinopec mainly due to disagreements on terms and conditions of the project despite the lapse of more than one and half years after signing the MoU.

The company secured the initial approval for investment in the establishment of an oil refinery in Hambantota in 2023. After that, the MoU for the project, cited as the largest Foreign Direct Investment (FDI) of Sri Lanka, was signed during President Anura Kumara Dissanayake's visit to China in January, 2025. It was his second trip undertaken after assuming office in September 2024.

If the project is implemented, it will have capacity to process 200,000...