Lanka to re-acquire 99 oil tanks leased to IOC: Minister

Sri Lanka will re-acquire 99 World War Ii-era oil storage tanks leased to Indian Oil Corporation in the eastern port district of Trincomalee, Energy Minister Udaya Gammanpila announced on Wednesday.

It is the second deal with India to be scrapped by Sri Lanka this year. Last month, the Sri Lankan government scrapped the trilateral deal with India and Japan to develop the Colombo Port's Eastern Container Terminal (ECT).

Gammanpila told a gathering at the Colombo north suburb of Kolonnawa that talks with the Indian High Commissioner in Colombo on this issue concluded last Sunday.

"I am happy to state that the Indian High Commissioner was very flexible at the talks. He ignored the conditions mentioned in the agreement signed in 2017 in order to be helpful to us," Gammanpila said, referring to his discussions with High Commissioner Gopal Baglay.

"He was flexible to agree to all our conditions. A majority of ships which sail around Trincomalee are from India. So we need India's cooperation to win their market," he said.

"I am proud to announce that the oil tanks the use of which had been denied to us since 2003 will be soon ours," Gammanpila said on the Trincomalee Oil Tank Farm.

The Trincomalee Harbour is one of the deepest natural harbours in the world. It was developed by the British during World War II.

These tanks will have the capacity to offer bunkering facilities to the ships sailing in close proximity to Trincomalee, Daily Mirror newspaper reported on Wednesday.

Trincomalee Harbour is one of the deepest natural harbours in the world