BOI dismisses concerns related to Mirijjawila oil refinery project

The Board of Investment (BOI) today dismissed concerns raised related to the Mirijjawila oil refinery project.

The BOI said that Foreign Direct Investment brought into Sri Lanka, including the oil refinery project in Hambantota, is channeled through the approved local banking system through Inward Investment Accounts(IIA) as per the Foreign Exchange Act and its regulations in Sri Lanka.

In the case of the oil refinery at the Mirijjawela Export Processing Zone , Hambantota, the BOI said that all financial transactions by the investor are routed through a reputed commercial bank in Sri Lanka.

All commercial banks have their own AML/CFT regulations, which are also carefully monitored by the Financial Intelligence Unit of the Central Bank of Lanka, the BOI said.

Transparency International Sri Lanka (TISL) yesterday said that it believes the controversy surrounding the proposed USD 3.85 billion oil refinery in Mirijjawila, Hambantota, could have a negative impact on Sri Lanka’s efforts to remove itself from the Financial Action Task Force’s (FATF) ‘Grey List’ of countries vulnerable to money laundering and terrorism financing.

The main investor in the project, the Singapore based ‘investment vehicle’ Silver Park International PTE Ltd, is a company controlled by the family of Tamil Nadu politician and former Indian Union Minister Dr. S. Jagathrakshakan, whose business interests have previously been implicated by Indian authorities and the media in several alleged corruption scandals.

Of the 40 FATF recommendations which set the international standards on combating money laundering, recommendation 12 requires that reasonable measures are taken to ascertain the source of wealth and source of funds in transactions involving politically exposed persons.

TISL Executive Director Asoka Obeyesekere said that in light of the efforts being made by the Central Bank of Sri Lanka to get off the FATF Grey List, it is essential that the Board of Investment conducts enhanced due diligence on the Silver Park International investment, given that its directors fall squarely within the FATF definition of politically exposed persons.

Given the confusion relating to the parties engaged in the project, TISL also called on all state agencies to ensure adherence to proactive disclosure provisions outlined in the Right to Information Act.

Section 9 of the RTI Act requires the line Minister of a given project to publicly communicate all available information relating to the project, three months prior to commencement. (Colombo Gazette)


  1. BOI to know the concerns refer to the article in the Ceylon telegraph submitted by Mr. Amrit Muttukumaru.
    It is a damn disgrace the under hand things engaged by the Yahapalanaya Looting Rulers.
    All Yahapalanaya underhand work EXPOSED.
    Amature looters of the Country.

  2. This latest Project of a US$3.85 Bln. Oil Refinery in Hambantota is similar to a Real Estate Development Project in the Bambalapitiya Flats canvassed by an Indian Investor whose office was based in Singapore. He was going to house the 300 families and shops already occupying this complex in one acre of land (total of about 11 acres I think) in a 70 floor high skyscraper. However when the Housing Ministry who runs the Flats asked a Deposit this businessman could not come up with the Cash., and the whole project fell apart.
    This was Prime Land in the Heart of Colombo., like the 400 acres in the Industrial Zone in Hambantota.
    I hope that this won’t end to be a ‘ Blind Pass’ in Rugby Parlance on a very important Date for our PM and Important Year for Sri Lanka as a whole and as we all know Power & Energy is our nations Achilles Heal.


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