The Sri Lankan government recently announced the construction of a refinery in the southern district of the Hambantota port located in the southern part of the country. The Hambantota port is the third largest international port in Sri Lanka, following the Colombo port in the west and the Trincomalee port in the east. China's Sinopec is in charge of the construction as the company won a construction tender issued by the Sri Lankan government. Vitol had been initially considered as a strong candidate to win the tender.

The government has not currently disclosed specific information such as the refining capacity and construction budget for the new refinery. Sinopec has become the third largest fuel retailer in Sri Lanka in August, expanding its business with over 100 fuel supply stations in the country. The Sri Lankan government had signed a contract with a Singaporean company regarding the construction of the refinery four years ago. However, the government apparently terminated the contract before the construction started.