A deal between Sinopec and the Sri Lankan government will see a new refinery built at the country's southern port of Hambantota.
The new plant will be focused on export markets, according to Reuters.
The island state currently has a single, 38,000 barrels a day refinery at Sapugaskanda in the west of the Island and built in 1969.
Hambantota is an established bunkering stop with designs on becoming an energy hub.
Bunker sales at the port have been significantly higher in 2023 compared to the previous year. China has invested heavily in projects on the island and Sinopec has been delivering bunker fuel to Hambantota since 2021.