Sri Lanka’s state-owned Ceylon Petroleum Corporation (CPC) and the local subsidiary of Indian Oil Corp have agreed to develop a strategic oil storage facility in Trincomalee.
Speaking on the first visit to Sri Lanka by an Indian leader in nearly three decades, India’s Prime Minister Narendra Modi said the project could help the island nation become a regional petroleum hub.
Sri Lanka is located on the shipping route between the Middle East Gulf region and Asia. The eastern port of Trincomalee served as an Allied supply hub during World War Two.
“We are also focusing on new opportunities. Today Lanka IOC and Ceylon Petroleum Corporation have agreed to joint development of the upper tank farm of the China Bay installation in Trincomalee on mutually agreed terms,” Modi told reporters after meeting President Maithripala Sirisena. “A joint task force will be constituted soon to work out the modalities. India stands ready to help Trincomalee become a regional petroleum hub.”