Sri Lankan, Indian oil firms to develop Trinco storage facility

COLOMBO (EconomyNext) – State-owned petroleum companies of India and Sri Lanka are to jointly develop an oil storage facility in the island’s eastern port of Trincomalee, Indian Prime Minister Narendra Modi announced.

The China Bay tank farm in Trincomalee is now operated by Lanka IOC, the Sri Lankan unit of Indian Oil Corporation.

"Today, Lanka IOC and Ceylon Petroleum Corporation have agreed to jointly develop the Upper Tank Farm of the China Bay Installation in Trincomalee on mutually agreed terms," Modi declared in a speech soon after talks with Sri Lankan President Maithripala Sirisena during a two-visit to the island that began Friday.

The tank farm was built by the British in the 1930s and was used by the British navy and air force during World War 2.

"A Joint Task Force will be constituted soon to work out the modalities. India stands ready to help Trincomalee become a regional petroleum hub," Modi said.

Modi also said India will go ahead and built a coal power plant in Sampour, Trincomalee.

"This landmark project would meet Sri Lanka’s energy needs."