China’s Sinopec Group team now in Sri Lanka eying CPC restructure

Top delegations from the China’s Sinopec Group (ranking fifth in the Fortune Global 500 list of 2022) and the China Merchants Group (152nd) are now in Sri Lanka looking for further investments in the island.

They are mainly focusing on petroleum and chemicals, trade, port and industrial park operations, the Chinese Embassy announced.

Sinopec Corp has set up a company in Sri Lanka for bunkering ships along a major maritime route four years ago in 2018.

The visit of the high powered official team of China’s Sinopec Group is very significant at this juncture since the government has taken steps to expedite the restructuring process of the Ceylon Petroleum Corporation (CPC), even looking at the possibility of giving a golden handshake for around 3700 workers out of the total number of 4200 while declaring a voluntary retirement scheme for them.   

The government intends to divide the CPC into multiple parts, providing local and foreign investors with investment opportunities. 

Accordingly, the CPC have been instructed to proceed with the proposed restructuring process as they have completed the necessary work to make them profitable under a new system, official sources said.

Despite being instructed earlier, the restructuring process was delayed due to slow preparation of procedures. 

According to Energy Ministry sources, Sinopec is set to join the Sri Lankan market for the purpose of importing, distributing, and selling petroleum products,

The government intends to divide the CEB and CPC into multiple parts, providing local and foreign investors with investment opportunities.

China Merchants group in already operating a port and industrial park in Hambantota and a container terminal in Colombo. (Bandula)