New Delhi: Sri Lanka has signed a deal with Lanka IOC, a local unit of Indian Oil Corp, to lease 75 oil tanks.
As per a report by, AFP, commenting on the same, Energy Minister Udaya Gammanpila asserted that the agreement signed with the Sri Lanka Unit of Indian Oil Corporation would involve the refurbishment of tanks near the eastern port of Trincomalee that were used during World War II by allied forces.
Meanwhile, taking to the micro-blogging site Twitter,” Gammanpila said, ‘Agreements to develop Trinco Oil Tank Farm signed this evening”.
According to the deal, Sri Lanka will hold 51 per cent, while India will hold the rest. However, the minister didn’t disclose that how much each side would invest.
Under the new deal, the Indian company will have a 50-year lease on the 14 tanks which they are currently operating and will have joint ownership of 61 tanks with Sri Lanka’s state-owned Ceylon Petroleum Corporation (CPC).
Notably, earlier this week, Sri Lanka’s cabinet had approved plans to develop the tanks, which have a capacity of eight million barrels.