Sri Lanka (on 31st December 2021) announced its decision to sign three lease agreements on developing the strategic Trincomalee oil tank farm with India.
GS-II: International Relations (India’s neighbors, Economic relations and Landmark agreements)
Dimensions of the Article:
- About Trincomalee Oil Tank Farms
- About India and Sri Lanka agreements to work on the Oil Tank farms
- 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