Indian Embassy in Sri Lanka expresses its gratitude for the signing of the agreement for the development of the Trincomalee Oil farm.
“A new milestone in the Indo-Sri Lankan economic and energy partnership. Congratulations to all parties for signing the agreement for the development of the Trincomalee oil farm,” it said in a statement.
Heartfelt appreciation for the guidance of the Indo-Sri Lankan leadership and the support of Ministers and relevant officials. ” it further added.
This is a big deal for India and Sri Lanka have finally achieved the implementation of an 35 years old agreement, contained in an exchange of letters between then Prime Minister Rajiv Gandhi and Sri Lankan President J R Jayewarndene as part of the annexure to the India-Sri Lanka Accord of July 29, 1987 — that the tank farm would be developed jointly.
After a spat with China over a contaminated consignment of organic fertilisers, Sri Lankan Finance Minister Basil Rajapaksa visited Delhi hoping to secure a financial lifeline.
He was offered a “four-pronged” package – a line of credit for fuel purchases from India, a separate line of credit for food imports from India, early “modernisation” of the oil storage facility at Trincomalee, and the enabling of Indian investments.