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Sri Lanka in talks with Marubeni, Honeywell for US$2.5bn refinery

Dec 03, 2015 06:10 AM GMT+0530 | 0 Comment(s)

ECONOMYNEXT - Sri Lanka is in talks with Marubeni, Honeywell and Fluor for a 2.5 billion US dollar refinery in the Southern port of Hambantota, an official said.

Board of Investment Chairman Upul Jayasuriya said the refinery would be given tax concessions competitive with those offered by Singapore.

The refinery would target exports markets or sell domestically on a competitive basis

The refinery did not want any guaranteed purchases or power purchase contracts with state-run power grid, he said.

Analysts say several earlier refinery projects sought deals to sell power to the Ceylon Electricity Board at high prices, which would have further hurt its financial viability, raised costs and undermined Sri Lanka's aspirations for competitive industrial exports.

The CEB is trying to reduce its reliance on liquid petroleum and move to coal and has managed to resist pressures to buy poewr from plants which are not in their long term generation plan.

The Hambantota port, which was built with Chinese finance has an industrial zone. (Colombo/Dec03/2015)
 


 

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