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
18 years of the lease period have lapsed. LIOC uses only 15 tanks,” he said. He
further said talks are in progress with India on the timeline for the
management of the tank farm, and the number of tanks to be kept under the sole
purview of the CPC. The Minister said the Cabinet paper would be submitted only
after a broad consultation process with the trade unions and other