Sri Lankan Cabinet has cleared Trincomalee Oil Tank Development Project with the Government of India.

This is a significant deal for India as Trincomalee Oil Tank project was proposed way back in 1987 but the Sri Lankan Cabinet has cleared it after 35 years. After reviewing the three existing agreements with the Government of India regarding the Trincomalee Oil Tank Complex through diplomatic talks, the two countries have reached an agreement to implement a joint development project.

As per the agreement, IOCL's Subsidiary Lanka IOC gets 14 oil tanks; Ceylon Petroleum Corporation gets 24 oil tanks; and joint development by Trinco Petroleum Terminal Pvt. Ltd. gets the remaining 61 tanks. 

Accordingly, the Cabinet of Ministers approved proposal presented by Minister of Power to allocate 24 oil tanks for the business activities of the Ceylon Petroleum Corporation, to allocate 14 tanks of the Lower Oil Tank Complex already in use by Lanka IOC for the company's business activities and to implement a development project by a company named Trinco Petroleum Terminal Pvt.Ltd. of the remaining 61 tanks, 51% to be owned by Ceylon Petroleum Corporation and 49% by Lanka IOC.