Sri Lanka to sign Trincomalee oil tank farm deal with India in a month, says Minister

The facility has 99 storage tanks with a capacity of 12,000 kilolitres each

After a year of visible strain in its ties with Colombo, New Delhi may finally have some reason for cheer. In a month’s time, Sri Lanka will ink the long-dragging deal with India to jointly develop the Trincomalee oil tank farms — a coveted project that has remained controversial for decades.

“We have been negotiating this for 16 months, and we are now very close to finalising the terms of the Trincomalee project with India. We hope to sign the agreement in a month,” Energy Minister Udaya Gammanpila told The Hindu on Sunday.

The Minister said he has instructed the Ceylon Petroleum Corporation (CPC) to form a subsidiary company, Trinco Petroleum Terminal Ltd., for the purpose. The move follows President Gotabaya Rajapaksa’s nod to setting up the special purpose vehicle ahead of the next Cabinet meeting. “We don’t have a Cabinet meeting this week because of the holidays. We will get the decision ratified in the next one,” Mr. Gammanpila said.