Sri Lanka and India are set to sign a long-awaited agreement to jointly develop the ‘Trincomalee oil tank farm.’
Highlights:
The Trincomalee oil tank farm deal is a much-desired project that has been contentious for a long time.
This project has been in the works for 16 months between India and Sri Lanka.Sri Lanka’s Energy Minister, Udaya Gammanpila, has directed the Ceylon Petroleum Corporation (CPC) to establish a subsidiary called Trinco Petroleum Terminal Ltd for this purpose.
President Gotabaya Rajapaksa has given his approval for the establishment of a special purpose vehicle.
During World War II, the British built the “Trincomalee Oil Tank Farms” to serve as a refueling station. It was constructed next to the Trincomalee port, which boasts a beautiful natural harbor.
The century-old oil tanks, on the other hand, will need to be refurbished to be fit for use again, which will cost millions of dollars.