Sri Lankan government finally agreed to sign the Trincomalee Oil Tank Complex project with India. After several rounds of diplomatic talks the two countries have reached an agreement to implement a joint development project said Udaya Gammanpila, Sri Lankan Energy Minister.
The Sri Lankan Cabinet approved a proposal presented by the Minister of Power to allocate 24 oil tanks for the business activities of the Ceylon Petroleum Corporation, to allocate 14 tanks of the Lower Oil Tank Complex already in use by Lanka IOC for the company’s business activities and to implement a development project by a company named Trinco Petroleum Terminal Pvt. Ltd. of the remaining 61 tanks, 51% to be owned by Ceylon Petroleum Corporation and 49% by Lanka IOC.
Meanwhile, the agreement with India was signed yesterday as part of a costly concession in return for US$ 500 million credit line and a US$ 1.5 billion currency swap from India. Sri Lanka’s India-friendly moves include the government’s decision to cancel Chinese power project in the North and reject Chinese organic fertiliser shipment.