Prime Minister Ranil Wickremesinghe arrived in India having secured Cabinet approval to enter into a Memorandum of Understanding (MoU) with the Indian government over the Oil Tank farm in Trincomalee.
“It is only a political decision. No specific agreement or venture was discussed,” Petroleum and Petroleum Resources Minister Chandima Weerakkody told the Daily News.
The Cabinet Paper seeking approval to enter into a possible MoU was presented to Cabinet yesterday by the Prime Minister himself.
The proposal to develop the Trincomalee Oil Tank Farm which consists of 99 oil storage tanks built by the British during World War II has seen several setbacks over the last few days as Ceylon Petroleum Corporation (CPC) unions protested against any agreement with the Indians over the China Bay Oil Tank Farm.
In 2003, the government signed a tripartite agreement to develop the oil tank farm with India and tanks were handed over to LIOC for use for a period of 35 years. At present however, the LIOC uses only 14 of the 99 tanks.
Interest in the farm was reignited in 2015 when Indian Prime Minister Narendra Modi visited Sri Lanka and discussed of a possible joint venture to develop the Upper Tank Farm at Trincomalee.
Two years later, as Prime Minister Wickremesinghe pays a visit to India, it was expected that a final deal would be worked out and ready when Prime Minister Modi visits Sri Lanka once again as the Chief Guest at the International Vesak Day celebrations this year.
This process however was hampered by the recent strike action launched by the CPC unions which had the Prime Minister issue a written assurance that no agreement would be signed regarding the China Bay farm during his Indian tour.
He had also assured the trade unions that the tanks will only be discussed with the Indian authorities after talking to the unions.