Sri Lanka wants to refurbish 30 oil tanks in Trincomalee with IOC

ECONOMYNEXT – Sri Lanka’s state-run Ceylon Petroleum Corporation wants to refurbish 30 tanks with Lanka IOC for fuel storage and distribution, Minister Chandima Weerakkody said.

The tank farm in Trincomalee, built by the British during World War II, was unused until they were leased to Lanka IOC, a unit of Indian Oil Corporation in 2002 as part of a privatisation deal, giving Indians a presence in the strategic port.

Weerakkody said he had submitted a plan to jointly refurbish and use 30 of the 102 tanks in the farm.

Most of the tanks were well preserved and only the pipelines needed to be built, he said.

The ousted Rajapaksa administration indicated that it would ‘take back the tanks’ from Lanka IOC.

However, Weerakkody said no cabinet papers were passed to that effect, though there were ‘draft papers’, he said.

Sri Lanka valued its relationship with India, he said.

There was a possibility of developing the tanks under Ceylon Petroleum Storage Terminals Ltd, a common user facility jointly owned by CPC and Lanka IOC.

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