Skip to content

China-Sri Lanka Oil Deal: So Much for the 'Debt Trap' Narrative

During his state visit to China over Jan. 14-17, President of Sri Lanka Anura Kumara Dissanayake signed a deal with China’s Sinopec for a $3.7 billion investment in an oil refinery with a daily capacity of 200,000 barrels. This will be the largest foreign direct investment in Sri Lanka, he reports. The refinery will be in Hambantota.

Those pushing the Chinese “debt trap” narrative pointed to the port at Hambantota as an example of China deliberately getting Sri Lanka into debt in order to take advantage of it. Considering the decision the country has just made with Sinopec, so much for that narrative!