Trinco oil tank farm Govt to strike final deal with India

• CPC will retain 24 tanks, 14 tanks leased out to LIOC for another 50 years
• 61 to be developed under new company 
• CPC will retain 24 tanks, 14 tanks leased out to LIOC for another 50 years
• Minister cites it as successful negotiation with India

By Kelum Bandara  

The government has decided to develop 61 oil tanks in Trincomalee jointly with India under the newly formed Trinco Petroleum Terminal Company, Energy Minister Udaya Gammanpila said.  

 The Minister told a news conference that 24 tanks would be developed solely by the Ceylon Petroleum Corporation (CPC) while 14 tanks presently being used by Lanka Indian Oil Company(LIOC) would be leased out for a further period of 50 years.  

The Minister said the Indo-Lanka accord signed on July 29, 1987 envisaged that the entire oil tank farm in Trincomalee should be developed jointly with India only. However, he said negotiations with India for the CPC to have greater control in this regard became successful in this manner. Referring to the new company formed for the purpose, he said 51 percent of equity would be held by the CPC and the rest by the LIOC.  

The Committee on Public Enterprises (COPE) can exercise its supervision on the financial activities of the new company. Besides, the CPC will nominate four out of seven directors of the company. The Auditor General can also exercise his power over its financial activities. “We successfully concluded our talks to take back control of the oil tank farm that remained assigned for development with India only by the previous governments.  Yet, in 2003, all 99 tanks were handed over to India on lease for 35 years. In 2017, the CPC unsuccessfully tried to secure lease payments from LIOC for them under an agreement signed between then Sri Lanka Minister Malik Samarawickrama and Indian Minister the late Sushma Swaraj,” he said. 

• The COPE can exercise its supervision on the financial activities of the new company