Delhi-Colombo-Trincomalee deal must be built on a comprehensive strategy: Moragoda

India and Sri Lanka should forge a larger strategic framework that builds on the Indian presence in key projects such as the Trincomalee oil tank farm and Colombo port and benefits both countries, Sri Lankan high commissioner Milinda Moragoda has said.

 

Sri Lanka inked a deal with a subsidiary of Indian Oil Corporation (IOC) last week for the long-gestating project to refurbish and develop the British-era Trincomalee oil farm, an 850-acre storage facility with a capacity of almost one million tonnes.

 

“The west terminal [at Colombo port] and the tank farm are two very important transactions, As I see it, the two sides should move seamlessly into the strategic area,” he said, adding he perceived the Trincomalee deal as “integrating Sri Lanka with India in the petroleum, oil and gas sector”.

 

The two sides should jointly develop a business plan for the Trincomalee tank farm that accounts for projections that India’s energy needs will grow by 50% by 2030 and the need for refining capacity will go up 30%. Oil storage and refining facilities at Trincomalee will also boost Sri Lanka’s energy security.