President Anura Kumara Disanayake revealed that discussions with India are underway to develop the Trincomalee oil tank farm and construct an oil refinery in the area. The President highlighted that 61 tanks from the complex are now jointly managed by the Indian Oil Corporation (IOC) and the Ceylon Petroleum Corporation (CPC) under a collaborative company.
Speaking at an event in Kalutara, President Disanayake expressed confidence that the ongoing talks could be concluded soon, paving the way for Sri Lanka to emerge as a global oil distribution hub.
The Trincomalee oil tank farm comprises 99 tanks, each capable of storing approximately 10,000 metric tons of oil. While this capacity significantly exceeds Sri Lanka’s domestic needs, the President noted that only 24 tanks are necessary for regional oil distribution. The remaining tanks, which have been deteriorating for decades, are being revitalized through a partnership with IOC.
Tracing the history of the facility, the President stated, “These tanks, originally owned by a British company, were acquired by the government during Sirimavo Bandaranaike’s tenure for £250,000. However, they have been in a state of disrepair since then.”
The proposed refinery, a key element of the partnership, is expected to not only modernize the tank farm but also position Sri Lanka as a key player in the international oil trade. President Dissanayake emphasized that leveraging the strategic location and unused storage capacity of the Trincomalee tanks would enable the country to export refined oil products, creating a valuable revenue stream.
He concluded by stating that the collaborative project with India represents a significant economic opportunity for Sri Lanka and aims to bring tangible results in the near future.