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Sri Lanka to ink new agreements on oil tank farm with India

Context:

Sri Lanka (on 31st December 2021) announced its decision to sign three lease agreements on developing the strategic Trincomalee oil tank farm with India.

Relevance:

GS-II: International Relations (India’s neighbors, Economic relations and Landmark agreements)

Dimensions of the Article:

  1. About Trincomalee Oil Tank Farms
  2. About India and Sri Lanka agreements to work on the Oil Tank farms
  3. About the Indo-Lanka Accord

About Trincomalee Oil Tank Farms

  • The Oil Tank Farms in Trincomalee Harbor located in ‘China Bay’ on the Eastern coast of Sri Lanka was built by the British during World War II as a refuelling station.
  • The Trincomalee Oil Tank Farms have been bestowed with several favourable factors of location:
    • It is located on a deep-water natural harbour of Trincomalee and also
    • along some of the world’s busiest shipping lanes –
  • Hence, it is a highly attractive and rewarding to work with Sri Lanka on developing this oil tank farm.

About India and Sri Lanka agreements to work on the Oil Tank farms

  • The Indo-Lanka Accord 1987 proposed the joint development of the oil tank farm in the internationally coveted deep water natural harbour of Trincomalee.
  • In 2003, Indian Oil Corporation set up its Sri Lankan subsidiary called Lanka IOC to work on this oil farm.
  • A well-developed oil storage facility and refinery adjacent to the Trincomalee Port would have great economic value for both India and Sri Lanka.

About the Indo-Lanka Accord

  • The Indo-Lanka Accord was signed in 1987 on the pretext of the Civil War in Sri Lanka (between Tamils and Sinhala community).
  • The accord sought to balance India’s strategic interests, interest of people of Indian origin in Sri Lanka and Tamil minority rights in Sri Lanka.
  • The accord saw the placement of the Indian Peace Keeping Force (IPKF) in Sri Lanka to resolve the Sri Lankan Civil War.
  • The accord also resulted in enactment of the thirteenth Amendment to the Constitution of Sri Lanka and the Provincial Councils Act of 1987.

-Source: The Hindu

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