Redeveloping the World War II-era oil tank farms in Trincomalee has been identified as a “permanent solution” to Sri Lanka’s energy challenges, Foreign Minister Vijitha Herath said, noting that steps are underway to expedite the project with support from India and the United Arab Emirates.
Speaking to The Hindu, Herath emphasized the need for long-term strategies over temporary fixes. He said the government signed a Memorandum of Understanding with India and the UAE in April 2025 to develop Trincomalee as a key energy hub.
The agreement, signed during Indian Prime Minister Narendra Modi’s visit to Sri Lanka, marked one of the first major strategic projects under the current administration.
Officials said Sri Lanka has already submitted a concept proposal to its partners, while technical aspects are being reviewed by the Energy Ministry. Once finalized, a tender process will be initiated to attract investors.
The Trincomalee oil tank farm project has been under discussion for decades, dating back to the Indo-Lanka Accord of 1987, but has seen limited progress until now.
However, the ongoing global energy crisis has renewed focus on the project, highlighting its importance for fuel storage and distribution.
Herath noted that although Sri Lanka does not directly import fuel through the Strait of Hormuz, global supply disruptions caused by the conflict in the Middle East have affected the country.
He said such crises have wide-ranging impacts, requiring national-level responses.
Amid rising global tensions and supply uncertainties, Sri Lanka recently introduced a QR-based fuel distribution system as a precautionary measure to manage fuel availability.
Source: The Hindu.
