Agreements to develop Trinco Oil Tank Farm has been signed this evening, Energy Minister Udaya Gammanpila said.
“Signatories were Treasury Secretary (for Gvt of Sri Lanka), Land Commissioner General, CPC, LIOC & Trinco Petroleum Terminal Ltd 85 of 99 tanks will be under Sri Lankan control which were under Indian control” Minister Udaya Gammanpila tweeted.
A new milestone in #India–#SriLanka economic and energy partnership!!Congratulations to all parties on signing the Agreement to develop Trincomalee Oil Tank Farms. Sincerely appreciate the guidance from leadership of 🇮🇳&🇱🇰 and support from all Ministers and officials concerned. pic.twitter.com/HQALQJeGSu
— India in Sri Lanka (@IndiainSL) January 6, 2022
Following diplomatic talks, the two countries have reached an agreement to implement a joint development project to develop the oil tanks.
Accordingly, the Cabinet of Ministers had approved the proposal presented by the Minister of Energy on the allocation of the oil tanks for this purpose.
As per the proposal, 24 oil tanks will be allocated for the business activities of the Ceylon Petroleum Corporation (CPC) and 14 tanks of the Lower Oil Tank Complex already in use by Lanka IOC will be further leased for the company’s business activities.
The proposal further stated a development project will be implemented by a company named Trinco Petroleum Terminal Pvt. Ltd. for the remaining 61 tanks, of which 51% will be owned by the CPC and 49% by the Lanka IOC. (NewsWire)
