Foreign Minister Vijitha Herath stated that redeveloping the World War II-era oil tank farms in Trincomalee is a “permanent solution” to Sri Lanka’s energy crisis, noting that the government is taking steps to fast-track the project with support from India and the United Arab Emirates.
He emphasized that temporary measures are not sustainable and that a long-term strategy is needed for oil storage and distribution, especially in the current global energy environment. Herath recalled that the government signed a Memorandum of Understanding with India and the UAE in April 2025 during the visit of Indian Prime Minister Narendra Modi to develop Trincomalee as a key energy hub.
The agreement marked one of the first major strategic initiatives under the administration of President Anura Kumara Dissanayake following the 2025 general election victory. The move is seen as a significant policy shift, as the Janatha Vimukthi Peramuna, a key component of the ruling alliance, had previously opposed Indian involvement in the project.
Since the signing of the MoU, discussions have progressed, with Sri Lanka submitting a concept proposal to its partners while technical aspects are being reviewed by the Energy Ministry. The government plans to initiate a tender process to attract investors once these preparations are completed.
The redevelopment of the Trincomalee oil tank farms has been under discussion for decades, dating back to the Indo-Lanka Accord, but has seen limited progress. However, the current global energy crisis has renewed urgency around the project.
Although Sri Lanka does not directly import fuel through the Strait of Hormuz, global disruptions have affected supply chains and prices. In response to rising tensions in West Asia, the government has introduced a QR-based fuel rationing system as a precautionary measure to manage domestic fuel distribution.
