Amid rising concerns from opposition parties about leasing the Trincomalee Port and its energy infrastructure to India, President Anura Kumara Dissanayake has clarified the government’s position.
Speaking on the political debate program, the President emphasized Trincomalee Port’s strategic and economic value, calling it one of the finest natural harbors in the world.
He noted that the deep-water port’s proximity to major maritime routes enhances its significance, especially for fuel trade.
The port area includes 98 fuel tanks—24 owned by the Ceylon Petroleum Corporation (CPC), 12 by the Indian Oil Company, and 61 still underutilized—each with a capacity of 12,500 metric tons.
The President clarified that no final agreement has been signed with India; only a Memorandum of Understanding (MoU) has been established to explore potential development and create a business plan.
Any formal agreement will depend on mutual approval of the business plan among the involved parties.
The proposed joint venture includes India, the UAE, and Sri Lanka and aims to develop the oil tank farm and related infrastructure, with the possibility of setting up a refinery.
The committee formed under the MoU will study logistics, including crude oil transport options like pipelines or shipping.
Addressing concerns about energy dependence on India, Dissanayake stated that CPC will continue sourcing fuel via competitive tender, regardless of infrastructure links to India.
He also mentioned that China’s SINOPEC is investing USD 3 billion in a refinery in Hambantota under the BOI, but even SINOPEC must compete in CPC tenders—rules that will also apply to any future Trincomalee-based operations.
