Cabinet cancels agreement between the BOI and Hambantota Oil refinery (Pvt.) Ltd

The Cabinet of Ministers approved proposal presented by the President in his capacity as the Minister of Investment Promotion to cancel the agreement  between the Board of Investment of Sri Lanka and Hambantota Oil refinery (Pvt.) as it has not acted according to the provisions of the agreement reached between the two parties.

The Cabinet of Ministers has given it’s approval on 17.09.2019 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 only for the export market. 1200 acres of land has also been allocated on a 50-year long-term lease basis for the implementation of the project. But the project proponent has not acquired the relevant land on lease basis and the project has not been implemented till now. The project proponent has been informed several times in writing regarding the implementation of the project, but has not responded.