The Trincomalee oil storage tank farm in China Bay leased to the Indian Oil Corporation (IOC) by the United National Party government of Mr. Ranil Wickremasinghe is to be re-acquired by the government.
Sources from the Ministry of Petroleum Industry said that a cabinet paper is to be submitted shortly for the re-acquisition of the Tank Farm as the Tank Farm has been handed over the Indian company violating several government standards.
The tank farm is located in 850 acres of land and has 99 tanks with the capacity to hold 12,100 metric tons of oil in each tank. The Petroleum Ministry sources said that the government expects to convert the petroleum storage tanks to a profitable venture with foreign investment.
The China Bay tank farm that connects to the Trincomalee harbor is of historic and strategic value and it is the largest tank farm located between the Middle East and Singapore. It was built by the British in 1930s to supply fuel to Royal Navy ships.
Even after granting independence to Sri Lanka in 1948, the British retained the Tank Farm and the Trincomalee harbour, the Katunayake Airport and the Colombo Port under their control until the people’s government of late Prime Ministere S.W.R.D.Bandaranaike ended the British control of these strategic locations and acquired them by the government.