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Trinco oil tank farm deal with Sri Lanka is of tremendous advantage for India, says expert

Reacting to the development, India’s former ambassador Jitendra Tripathi said, “India for quite some time has been trying either to replace or to minimize the influence of China over the region. In Nepal, Deuba has indicated that he will talk to India to strengthen the relationship. Similarly, in Sri Lanka, Jaishankar has met the Sri Lankan President recently.

Trinco oil tank farm deal with Sri Lanka is of tremendous advantage for India, says expert
Trinco oil tank farm deal with Sri Lanka is of tremendous advantage for India, says expert

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Published : Dec 27, 2021, 10:11 PM IST

New Delhi:In what can be seen as a step towards improving the strained ties between both the nations, Colombo in a month is slated to sign the long-dragging deal with India to jointly develop the most coveted project- the Trincomalee oil tank farms in the Eastern district of Trincomalee. The announcement was made by the Sri Lankan Energy minister Udaya Gammanpila on Sunday.

Reacting to the development, India’s former ambassador Jitendra Tripathi said, “India for quite some time has been trying either to replace or to minimize the influence of China over the region. In Nepal, Deuba has indicated that he will talk to India to strengthen the relationship. Similarly, in Sri Lanka, Jaishankar has met the Sri Lankan President recently.

Despite problems, the Colombo West project has been given to India and now the signing of an agreement with Sri Lanka to jointly develop the Trincomalee oil tank farms would certainly be of tremendous advantage for India because the area is inhabited by Tamil origin, Sri Lankans. Therefore, it makes strategically important for India to have a foot in there”, he added.

Tripathi further pointed out that India’s relationship with Sri Lanka has been better than what it had been during the first regime of Mahinda Rajapaksa. India has friendly ties with Maldives, Sri Lanka, Bangladesh, Iran and most recently, India have approached Myanmar to recover the relationship and with this, it can be said that in the Indian ocean- especially the Arabian sea and Bay of Bengal, India is trying to contain China and have been able to do it to quite a good extend.

“The signing of the Trincomalee project between New Delhi and Colombo will be another step towards getting closer to Sri Lanka. The strategic importance of the Trincomalee oil tank farms is that India will have ‘a say’ in the region because time and again Sri Lankan leaders have reiterated that the country is in a very precarious situation as it is caught between two big powers-India and China.

The Sri Lankan leaders have been making it clear that the island nation doesn’t want any foreign power to dictate its foreign or economic policies. Politically, Sri Lanka is close to India but economically, it is closer to China. Although, India’s ties may vary with Sri Lanka, at present India is in a better position than China as regards to the Indian Ocean”, said Tripathi.

According to reports, on Sunday, Sri Lankan Energy minister Udaya Gammanpila has told reporters that India-Sri Lanka has been negotiating this for 16 months and that the country is very close to finalising the terms of the Trincomalee project with India. “We hope to sign the agreement in a month,” Gammanpila added.

According to a Chennai-based newspaper, the Minister has instructed the Ceylon Petroleum Corporation (CPC) to form a subsidiary company, Trinco Petroleum Terminal Ltd., for the purpose.

In October this year, Foreign Secretary Harsh V Shringla toured the oil tank farms in Trincomalee in Sri Lanka’s East coast, where he was briefed about the development undertaken at the lower tank farms and the possibilities for further strengthening the India-Sri Lanka energy partnership to enhance Sri Lanka’s energy security.

The oil tank farms in Trincomalee have been a key bilateral economic partnership link for decades between India and Sri Lanka.

It is worth noting that if the agreement is finalized and signed next month, January 2022, it will mark the end of New Delhi’s 16-month-long negotiation with the ruling Rajapaksa administration.

What is Trincomalee Oil Tank Farm?

Trincomalee Oil Tank Farms was built by the British during the Second World War, to serve as a refuelling station. It was built adjacent to the Trincomalee port, which is a desirable natural harbour. However, the century-old oil tanks need to be refurbished to be fit for use again, at the cost of millions of dollars.

The proposal to renovate the oil farm was envisaged 35 years ago, in the Indo-Lanka accord. This accord states that ‘work of restoring and operating the Trincomalee oil tank farm will be undertaken by India and Sri Lanka, as a joint venture’.

Located in the China Bay, the Trincomalee Oil Tank Farm comprises 99 storage tanks, with a capacity of 12,000 kilolitres each, spread across Lower Tank farm and Upper Tank Farm.

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