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Cabinet decides to scrap BOI-Hambantota oil refinery deal
15 Aug, 2023
The Cabinet has decided to scrap an agreement between the Board of Investment of Sri Lanka (BOI) and the Hambantota Oil refinery (Pvt.) Ltd for the construction of a petroleum refinery.
The Cabinet of Ministers had on 17.09.2019 approved a proposal to enter into an agreement between the Board of Investment of Sri Lanka and Hambantota Oil refinery (Pvt.) Ltd for the construction of a petroleum refinery with a capacity of 420000 barrels per day in the Hambantota area for the export market.
The Government said that 1200 acres of land had also been allocated on a 50-year long-term lease basis for the implementation of the project.
However, the Government said that the project proponent had not acquired the relevant land on lease basis and the project had not been implemented.
According to the Government, the project proponent has been informed several times in writing regarding the implementation of the project, but there has not been any response.
“The project proponent has not acted according to the provisions of the agreement reached between the two parties,” the Government said.
As a result the Cabinet of Ministers have approved a proposal presented by President Ranil Wickremesinghe, in his capacity as the Minister of Investment Promotion, to cancel the said agreement. (Colombo Gazette)
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