Energy Security An Important Area, We Are In Consultation With Sri Lanka: India On Trincomalee Deal

During his visit to Sri Lanka in 2015, Prime Minister Narendra Modi had spoken about developing Trincomalee as a 'regional hub'.

A view of some of the oil storage tanks with the port of Trincomalee in the background in Sri Lanka | Photo: AFP

New Delhi: Day After Sri Lanka’s Cabinet of Ministers gave its nod for a new deal to jointly develop the Trincomalee oil tank farm with India, MEA Spokesperson Arindam Bagchi welcomed the move and said this was an “important area of our bilateral cooperation”.

“We've seen reports on this. Energy security is an important area of our bilateral cooperation with Sri Lanka,” he said.

Bagchi added: “We are in consultation with Sri Lanka for modernisation of Trincomalee oil tank farms. It'll allow for fuel storage.”

We've seen reports on this. Energy security is an important area of our bilateral cooperation with Sri Lanka. We're in consultation with SL or modernisation of Trincomalee oil tank farms, it'll allow for fuel storage: @MEAIndia on SL cabinet clearing Trincomalee oil tank farms

— Prasar Bharati News Services पी.बी.एन.एस. (@PBNS_India) January 6, 2022

Sri Lankan Finance Minister Basil Rajapaksa was in India last year when food security and energy security were discussed, among other issues.

Project Expected To Be Signed Soon

In a statement issued to the media on Wednesday, Sri Lanka’s Department on Government Information said India and Sri Lanka “have reached an agreement to implement a joint development project” through diplomatic talks, The Hindu reported.

Quoting local media, the report said an agreement on the project is likely to be signed soon.

Sri Lanka's eastern Trincomalee district has a natural harbour, and India has long wanted to develop the World War II-era storage tanks there. The project was first discussed around the time the India-Sri Lanka Accord was signed in 1987, according to The Hindu report. 

During his visit to Sri Lanka in 2015, Prime Minister Narendra Modi had spoken about developing Trincomalee as a “regional hub”.

Meanwhile, the Sri Lankan cabinet also cleared two other proposals involving India. The official statement said India’s Ashok Leyland has won the bid to provide 500 new buses to Sri Lanka, and the country’s police force will buy 750 jeeps from India’s Mahindra and Mahindra.