A controversy raised regarding the Sinopec investment, touted as the largest foreign direct investment in Sri Lankan history, with MP Lakmali Hemachandra from the National People’s Power (NPP) claiming it materialised under the current administration.
Speaking during the Derana 360 programme yesterday (11), hosted by Kalindu Karunarathne, Minister of Power and Energy Kumara Jayakody rejected this assertion, stating that the process began well before the current government took office.
This was when Karunarathne queried whether MP Lakmali Hemachandra’s claim on the matter was correct.
According to Jayakody, the project originated in 2022 with a call for Expressions of Interest (EOI), which attracted seven companies. The list was narrowed down to Sinopec and Vitol, but Vitol later withdrew, leaving Sinopec to proceed. “Her statement that Sinopec came during our time is not correct. We are simply continuing the process that was already underway,” the minister said.
He stressed that the government’s role is to protect projects that benefit the country, even if initiated by others. However, he acknowledged difficulties in meeting some of Sinopec’s conditions, which reportedly conflict with International Monetary Fund (IMF) requirements. These include demands relating to FDI status, tax incentives, and a market share exceeding 150%. “We have given what they asked for within our limits… operating within legal regulations,” he noted.
The minister confirmed ongoing talks over a water supply issue raised by Sinopec, with negotiations involving the Irrigation Department. A resolution is expected within six weeks. He also observed that while the project is significant for Sri Lanka, it may be comparatively small for Sinopec, one of the world’s largest oil companies.
When asked whether he would consider discussing the matter further with MP Lakmali Hemachandra, Jayakody said he was open to the idea.
