Sri Lanka to have 10 Trincomalee tanks for own use
ECONOMYNEXT – India Oil Corporation has released 10 tanks leased to it in 2003 for Sri Lanka’s exclusive as part of a joint venture to be set up to operate a section of a tank farm by the North Eastern port of Trincomalee.
Sri Lanka leased the tank farm built by the British during World War II to India in 2003, and several tanks were rehabilitated and are used by Lanka IOC, a publicly traded subsidiary of IOC in Colombo.
State-run Ceylon Petroleum Corporation and Lanka IOC will set up a joint venture to develop the ‘upper tank farm’ of the complex with 10 tanks to be given for the use of Sri Lanka, according to report on Sri Lanka’s The Sunday Times newspaper.
The land in the upper tank farm of which Lanka IOC has possession will be leased back to the joint venture.
The land of the lower tank farm will be leased to Lanka IOC directly.
The leases will be for 50 years and extendible for 99-years on mutual consent.
Some petroleum trade unions struck work ahead of the sgning of the deal. The newspapper said Petroleum Minister Chandima Weerakkody was unhappy with the deals.
The tank farm had been unused for decades, until India started to use them in a bid to gain a presense in th