China has offered to invest USD 3.7 billion in Sri Lanka, stated to be the biggest-ever foreign investment in the island nation, to build a state-of-the-art oil refinery as the two countries signed a new plan to upgrade BRI cooperation during Sri Lankan President Anura Kumara Dissanayake's state visit here.

BEIJING (Reuters) -China and Sri Lanka agreed on more investment and economic cooperation on Wednesday as China's President Xi Jinping met recently-elected Sri Lankan President Anura Kumara Dissanayake in Beijing.

Sri Lanka’s Ministry of Power and Energy and China’s Sinopec Corporation have signed an agreement to build an oil refinery in Hambantota with an investment of USD 3

Dissanayake incidentally was a critic of the Hambantota port deal for its long-term lease while he was in the opposition.It was seen as a balancing act as last year India and Sri Lanka inked a deal to jointly develop 85 Word War II-era oil storage tanks at the strategic Trincomalee port in the eastern region of the country.

According to a press release by the Sri Lankan President's media division, his visit marked a “significant milestone” by securing the largest foreign direct investment to date of $3.7 billion Chinese investment to build a state-of-the-art oil refinery at Hambantota.

China places Sri Lanka on top of its neighbourhood diplomacy and supports it in safeguarding its sovereignty, President Xi Jinping told his Sri Lankan counterpart Anura Kumara Dissanayake during their