• CPC says infrastructure development of Trinco tank farm underway 

High-level discussions regarding a proposed oil pipeline between Sri Lanka and India have lost momentum, with no substantive talks held since the Indian Prime Minister’s recent visit and no draft agreement prepared yet, a senior energy official has confirmed. 

Ceylon Petroleum Corporation (CPC) Managing Director Dr. Mayura Neththikumarage revealed that while diplomatic negotiations for the pipeline had lost momentum, physical development of the project’s core infrastructure, the historic Trincomalee Oil Tank Farm, was now actively underway.

“The matter must be discussed in the future, but there have been no discussions since the visit,” Dr. Neththikumarage stated, confirming that there were no new developments in the pipeline. 

He clarified that the initial talks were centred on the overarching energy hub concept and that a specific tripartite agreement for the pipeline remained pending. 

“We did not have a draft to discuss. That aspect is still on the table,” he said. 

This stagnation was first acknowledged by Ministry of Energy Secretary Prof. Udayanga Hemapala, who described progress on the trilateral Memorandum of Understanding involving Sri Lanka, India, and the UAE as “very slow,” with substantive discussions yet to begin. 

According to Dr. Neththikumarage, “the physical development of the tank farm is underway now, which is a crucial step in establishing the necessary infrastructure for the larger hub vision”. 

Prof. Hemapala also validated Dr. Neththikumarage’s claim that foundational work for the energy hub was progressing under the auspices of the CPC. 

He also provided further details on the distribution of the tank farm assets: “Trinco Petroleum Terminal Ltd., a joint venture of the Indian and Sri Lankan Governments, holds 61 tanks. The Indian Oil Corporation (IOC) holds some of the tanks, while the CPC owns approximately 20–24 tanks. The CPC has already begun developing some for its own operational use.”