Singapore-promoted Hambana Petrochemicals signed the agreement with an export zone tied in with a Chinese-funded port in southern Sri Lanka.
"This will be the largest single-location PET plant in the world. It would also be integrated subsequently with another plant, which would be set up in the second phase with a capital outlay of US$450m," said Abhijit Sen, CEO of Hambana Petrochemicals, adding that the facility will be the first PET producer on the island and will export 4m tonnes of the material in its first year.
The agreement is for an initial term of 25 years with an expected total investment is US$137.39m.
PET resin is the raw material used in manufacturing PET bottles and containers, a popular packaging solution for carbonated soft drinks, water, liquor and various food/non-food packaging applications.