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.