The Cabinet of Ministers on Monday cancelled the agreement between the Board of Investment and Hambantota Oil Refinery (Pvt) Limited for the construction of a petroleum refinery, Cabinet Spokesman and Mass Media Minister Dr. Bandula Gunawardhana said.
Speaking at the weekly Cabinet media briefing at the Government Information Department, Minister Gunawardhana said the BoI and the Hambantota Oil Refinery (Pvt) Limited entered into an agreement for the construction of a petroleum refinery with a capacity of 420,000 barrels per day in Hambantota only for the export market.
“Around 1,200 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,” he said.
The project proponent has been informed several times in writing regarding the implementation of the project, but he has not responded. The project proponent has not acted according to the provisions of the agreement reached between the two parties.
For this reason, the Cabinet of Ministers approved a proposal presented by President Ranil Wickremesinghe in his capacity as Investment Promotion Minister to cancel the said agreement.