According to a Nov. 28 report by RIA Novosti, Sri Lanka's Energy Minister Kanchana Wijesekera said the Sri Lankan Cabinet approved a plan by China Petroleum & Chemical Corporation (Sinopec) to invest $4.5 billion in the country's Hambantota Port to build an oil refinery.

This comes after China Merchants Port Holdings Ltd. was awarded the 99-year right to operate the Hambantota port and an agreement to build a logistics and warehousing center at the port with an investment of $392 million.

Sinopec is stepping up its business dealings with Sri Lanka, especially as the company has a concession for 150 gas stations, the report said. According to analyst sources, the planned refinery is capable of targeting markets outside Sri Lanka.

Separately, Reuters reported on Nov. 27 that Sri Lanka approved Sinopec's plan on Nov. 27 to invest $4.5 billion in a refinery, the island nation's largest single investment since last year's severe economic crisis, the country's energy minister said.