Sri Lanka will sign a deal with Lanka Indian Oil Corporation (LIOC) to restore 75 oil tanks as the country moves to secure a $500 million fuel credit line from India, its energy minister said on Friday.
The island nation is facing dwindling foreign exchange reserves and has nearly $4.5 billion worth of debt repayments in 2022, prompting it to look at innovative ways to bring in foreign exchange.
The facility, with 99 storage tanks, is located next to a harbour off Sri Lanka’s east coast and though India and Sri Lanka agreed to jointly develop it in 1987, negotiations dragged on for decades.
The cost of restoration is pegged at about $1 million per tank. The latest round of negotiations between the Sri Lankan government, its Indian counterpart and LIOC began in August 2020.
