Modi asks Anura to expedite Trincomalee oil tanks

Indian Prime Minister Narendra Modi has requested President Anura Kumara Dissanayake to expedite the joint energy projects proposed to be implemented between India and Sri Lanka. Political sources confirm that this request was made during a recent special telephone conversation between the leaders of the two countries.

There, the Indian Prime Minister primarily emphasized the importance of expeditiously completing the joint project to renovate the Trincomalee oil tank complex.

This Trincomalee oil tank development project is a program of utmost importance to both Sri Lanka and India. Through Trinco Petroleum Terminal Company, Lanka IOC (LIOC) and Ceylon Petroleum Storage Terminals Ltd (CPSTL) jointly signed a limited agreement in 2023 to develop sixty-one oil tanks there. Although nine tanks were planned to be modernized under its initial phase, practical development work has been significantly delayed to date, despite several years having passed since the agreement was signed.

Commenting on the financial status and future steps of this project, Foreign Minister Vijitha Herath pointed out that renovating just one oil tank would cost approximately twelve million US dollars. Accordingly, the entire project is estimated to cost between seventy-five and one hundred million US dollars. A special cabinet paper is expected to be submitted to the Cabinet in the future with the aim of expediting this process, after which tenders will be called for the development of the oil tanks.

With the completion of this project, Sri Lanka's national energy security will be strengthened, and domestic fuel storage capacity and supply will significantly increase. Furthermore, India will also have the opportunity to easily use this Trincomalee oil tank complex for storing its fuel and for future export activities.