The government has officially terminated the agreement between the Board of Investment (BoI) and the Hambantota Oil Refinery (Pvt.) Ltd., according to Cabinet spokesman Bandula Gunawardana.
During a media briefing, Gunawardana stated that on September 17, 2019, the Cabinet approved an agreement between the BoI and the Hambantota Oil Refinery (Pvt.) Ltd. The agreement aimed to construct a petroleum refinery with a capacity of 420,000 barrels per day in the Hambantota region, solely for the export market.
Gunawardana further explained that a 1,200-acre land area had been allocated on a long-term lease basis of 50 years for the project's implementation. However, the project proponent has failed to acquire the designated land on a lease basis, and as a result, the project has not been executed thus far.
The project proponent has received written notices multiple times regarding the project's implementation, but they have not responded or taken any action in accordance with the agreement between the two parties, added Minister Gunawardana.
