Skip to content
Search

Latest Stories

Sri Lanka terminates £3bn deal for foreign-funded oil refinery

The project was originally meant to be jointly funded by Silver Park, owned by an Indian family company and Oman and was due to be completed this year.

Sri Lanka terminates £3bn deal for foreign-funded oil refinery

CASH-STRAPPED Sri Lanka announced on Tuesday (15) that it was scrapping a $3.85 billion (£3.03bn) deal to build an oil refinery that was set to become the island nation’s largest foreign investment.

Energy minister Kanchana Wijesekera said the cabinet terminated the agreement on Monday (14) because Singapore-registered Silver Park International had failed to begin construction since a ground-breaking ceremony in 2019.


The project was originally meant to be jointly funded by Silver Park, owned by an Indian family company and Oman and was due to be completed this year.

Wijesekera said the government would seek a different foreign partner to set up a refinery primarily for the export of petroleum products.

China’s Sinopec and Vitol had been short-listed to set up what would become the island’s second oil refinery, near the Chinese-managed southern port of Hambantota, he said. A new partner would be announced within weeks.

“The cabinet cancelled the agreement with (Silver Park’s) Hambantota Refinery Company because they did not proceed with the construction,” Wijesekera said. Some 1,200 acres (485 hectares) of land allocated for the refinery were taken back, he said.

President Ranil Wickremesinghe was Sri Lanka’s prime minister when he attended the ground-breaking ceremony in November 2019.

Wickremesinghe had hoped the refinery in Hambantota, a deep sea port near busy shipping lanes between Asia and Europe, would attract more investment to the area. The port was controversially leased to a Chinese stateowned firm in 2017 for 99 years for $1.12 billion, less than the $1.4 billion Sri Lanka paid a Chinese company to build it.

Sri Lanka defaulted on its $46 billion external debt in April 2022 after running out of foreign exchange to finance essential food, fuel and medicines.

More For You

‘All options on the table’ as Britain
prepares for likelihood of US tariffs

Sir Keir Starmer with Jonathan Reynolds

‘All options on the table’ as Britain prepares for likelihood of US tariffs

BRITAIN is likely to be hit by US tariffs despite making “rapid progress” over a trade deal with Washington, prime minister Sir Keir Starmer said on Tuesday (1).

He spoke as US trading partners around the world braced for an expected fresh raft of tariffs from president Donald Trump, in addition to levies already imposed on steel and those set to take effect this week on cars.

Keep ReadingShow less
single-use vapes-iStock

Analysis by Material Focus estimates that 8.2 million vapes are discarded or littered each week in the UK—equivalent to 13 every second. (Representational image: iStock)

iStock

Shops told to clear single-use vapes before ban starts on June 1

SHOPS across the UK have until 1 June 2025 to sell off remaining stocks of single-use vapes before a nationwide ban comes into force.

The legislation, confirmed last year, follows a government consultation that showed strong support for restricting their sale and supply.

Keep ReadingShow less
Primark-London-Getty

During his 15-year tenure, Marchant expanded Primark’s store network to more than 450 locations across 17 countries in Europe and the United States. (Photo: Reuters)

Primark chief Paul Marchant steps down after misconduct probe

PAUL MARCHANT, the head of fashion retailer Primark, has resigned with immediate effect after admitting to an "error of judgment" in his behaviour towards a woman in a social setting.

Associated British Foods (AB Foods), Primark's parent company, announced his resignation on Monday.

Keep ReadingShow less
Jaguar’s bold gamble: Can it woo young, wealthy drivers with a £123k EV?

Jaguar’s bold gamble: Can it woo young, wealthy drivers with a £123k EV?

JAGUAR’S ambition to seduce younger, richer drivers was on full display in Paris with a presentation of its newest prototype, the Type 00, which promises all-electric luxury... at a steep price.

The low-slung, muscular-looking concept car presented to European reporters last Friday (21) prefigures a production model expected mid-2026 at a base cost of €150,000 (£123,472.8).

Keep ReadingShow less
Starmer-Trump-Getty

Trump has suggested the possibility of a 'great' trade deal that could help the UK mitigate the impact of tariffs he has pledged to introduce. (Photo: Getty Images)

Starmer, Trump talk trade deal progress in 'productive' discussion

KEIR STARMER and Donald Trump spoke on Sunday about ongoing UK-US trade negotiations, with Downing Street describing the talks as "productive."

Since leaving the European Union, the UK has been working to secure a trade agreement with the United States. Successive British governments have pursued a deal, but it has remained elusive.

Keep ReadingShow less