Sri Lanka finalising talks to reacquire oil tanks leased to India: Minister

Sri Lanka is nearing completion of talks with India to reacquire the 99 World War II-era oil storage tanks leased to the Indian Oil Corporation in the strategically advantaged port district of Trincomalee in the country’s east coast, Energy Minister Udaya Gammanpila said on Wednesday. The Trincomalee Harbour, one of the deepest natural harbours in the world, was developed by the British during World War II.

Since 2003, the Lanka IOC, the Sri Lankan subsidiary of India’s oil major Indian Oil Corporation (IOC), has the leasing rights to 99 tanks at the facility for a period of 35 years for an annual payment of USD 100,000.

Energy Minister Gammanpila had earlier this year made his intentions clear to reacquire the tanks.