Sri Lanka, May 4 -- Sri Lanka and China have reached an agreement on tax concessions for a proposed $3.7 billion oil refinery in Hambantota, marking a milestone in the long-delayed investment by Chinese energy giant Sinopec.

Minister of Labour and Deputy Minister of Economic Development, Anil Jayantha Fernando said that tax terms were finalised, with only one key issue pending, the volume of fuel that can be released to the domestic market.

Minister Fernando told The Sunday Observer that the Sinopec project, which has doubled in scope since its initial announcement, could be a game changer for Sri Lanka's energy sector.

"Sri Lanka has been in discussions with China about this refinery for some time. Initially, it was planned as a $1.9 ...