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Union to write to Gammanpila today on Trincomalee oil tanks  

22 Feb 2021

The United National Party (UNP)-affiliated Jathika Sevaka Sangamaya (JSS) will hand over a letter today (22) to Minister of Energy Udaya Gammanpila, regarding the 99 oil storage tanks in Trincomalee, following contradictory claims about the tanks last week. Speaking to The Morning, JSS CPC Branch President Ananda Palitha said that the letter would state the union’s position for ensuring that the Trincomalee oil tanks would be in the hands of Sri Lanka in the future. At a press conference held yesterday (21), Palitha urged all unions and stakeholders to unite to ensure that the Trincomalee harbour would not be given to India.  “The ocean surrounding the harbour may be called the ‘Indian Ocean’, but it belongs to Sri Lanka,” said Palitha.  It was reported last week that Gammanpila had said the oil tanks would be “reacquired” by the Government. However, he later clarified this statement, saying that the management of the 99 oil tanks in Trincomalee, which were leased to the Lanka Indian Oil Company (LIOC) since 2003, would be shared between the CPC with a majority share, and a company owned by the LIOC with a minority share. Meanwhile, the High Commission of India clarified in a statement on Thursday (18) that there had been no truth to media reports on Wednesday (17) that claimed the understanding between the two governments on jointly developing and operating the Upper Tank Farm at Trincomalee has been “scrapped”. The statement further referred to Gammanpila’s press briefing on Thursday (18), endorsing his clarification of the future plans. All attempts by The Morning to contact Gammanpila, regarding any future discussions with the unions, proved futile.  On Thursday (18), Palitha alleged that Minister of Energy Udaya Gammanpila was misleading the public by saying that the Government will re-acquire the 99 oil storage tanks leased to the LIOC in Trincomalee, while simultaneously planning another new joint venture between the CPC and the LIOC. CPC Chairman Sumith Wijesinghe told The Morning on Thursday (18) that a storage tank farm, as part of a concept called the “South Asian Petroleum Hub” would be developed at the East Trincomalee Harbour, together with the SLPA and the LIOC. The Trincomalee oil tank farm, now consisting of 99 tanks and divided into a Lower Tank Farm and an Upper Tank Farm, was leased to the LIOC in 2003 for 30 years, which will expire in 2033. The LIOC initially refurbished 15 tanks in the Lower Tank Farm.  Following the Memorandum of Understanding (MoU) on Co-operation of Economic Projects by the Yahapalana Government, a joint venture between the LIOC and the CPC was set up. Accordingly, India agreed to refurbish and use the 84 giant oil tanks in the Upper Tank Farm as a “joint venture”.


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