Modalities of takeover by Sri Lanka of Trincomalee port oil tank farms finalysed

Sri Lankan Energy Minister Udaya Gammanpila said the Trincomalee Oil tank farm after their take over from India would be managed under a company to be formed with Lanka Indian Oil Company with a majority stake for the Ceylon Petroleum Corporation (CPC).

It will be a company with majority stake for the Ceylon Petroleum Corporation. It is subject to scrutiny by the Auditor General. The Committee on Public Enterprises (COPE) can peruse the audit reports Minister Gammanpila told a news conference that the agreement for such an equity sharing arrangement could be reached after successful negotiations with India.

The oil tank farm with 99 tanks and a capacity to store10,000 tonnes of fuel in each

He said there are 99 tanks used during World War II with a capacity to store 10,000 tonnes of fuel in each. “It means we can store fuel sufficient for two months,” he said.

After the World War II, he said these tanks had not been utilised properly. He said the government of former Prime Minister the late Sirimavo Bandaranaike acquired these tanks from the British rule, but the UNP government leased them out to LIOC for 35 years at an annual payment of US $ 1000 per tank.

18 years of the lease period have lapsed