Mar 14, Colombo: Sri Lanka will set up the world's largest Polyethylene Terephthalate (PET) packaging resin plant with an investment of over US$ 500 million in the export zone of southern port city of Hambantota.

A statement released by the Sri Lanka Ports Authority (SLPA) said that an agreement has been signed with Singapore -based Hambana Petrochemicals Ltd. to build the resin plant in the investment zone adjacent to the Chinese funded and built Hambantota Port.

"The total tonnage for the port through this industry in phase I and II is close to 4 million tons," the Director/CEO of Hambana Petrochemicals Limited Abhijit Sen said.

The plant is to be integrated subsequently with another plant, which will be set up in the second phase with a capital outlay of US$ 450 million, according to the director.

The world's largest single location PET packaging plant will attract an investment of US$ 137.39 million to the country.

This business venture agreement has been signed for an initial term of 25 years.

PET is a popular package for food and non-food products and PET resin is used in manufacturing bottles and containers for various food and non-food packaging applications.

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