Amid government plans to hold discussions with the Indian government and the Indian Oil Company (IOC) on reclaiming 25 oil tanks in the Trincomalee fuel storage complex CEYPETCO is exploring the possibility of wooing a foreign investor to build a new oil tank complex at Hambantota, Power, Energy Minister Mahinda Amaraweera said today.

He said India had been informed of Sri Lanka's need to take back 25 fuel storage tanks from the Trincomalee complex given to the IOC on a 30-year lease agreement signed in 1993 by the then government at a rental of US$100,000 a year.

“The question now is how many of the tanks built in the 1930s on a 850 acre extent of land are usable. Besides, the 30-year lease agreement signed with the IOC is due to expire in 2023. Under these circumstances it is best to build a new tank complex with modern facilities," the minister said.

He said in case the IOC gave back 25 tanks to Sri Lanka, CEYPETCO would have to spend Rs.2,000 million to convert them storage tanks that were usable.

The minister said he had directed CEYPETCO's top management to discuss with the Hambantota City Development Authority to identify a suitable plot of land to build the new fuel tank complex.(Sandun A Jayasekera)