Lankan Oil Investment Modified

An agreement between Iran and Sri Lanka for the expansion of Sapugaskanda Oil Refinery has been altered due to Sri Lanka's inability to meet the stipulated conditions.

Sri Lanka will pay its share of the project in installments over the period of construction, Moj News Agency wrote.
Authoritative sources said that in the original agreement, the Sri Lankan government had made a commitment of 30 percent of $1.47 billion project upfront. It subsequently said it could not raise the required funds.
The project aims at doubling the production capacity of the oil refinery near Colombo from 50,000 barrels per day to 100,000 bpd.
Sri Lanka has greatly benefited from Iran making available what diplomatic sources called $700 million in cash to purchase oil.