Trincomalee Oil Tank Farms
Context:
In the coming days, India and Sri Lanka are going to sign the long pending deal to jointly develop the Trincomalee oil tank farms.
About Trincomalee Oil Tank Farms
- The facility, built by the British around World War II as a refueling station, has 99 storage tanks that look like giant wells.
- It is located in ‘China Bay’ in close proximity to the internationally coveted deep water natural harbour of Trincomalee.
- They have a capacity of 12,000 kilolitres each.
- Eighty-four of those are in the 800-acre Upper Tank Farm (UTF). For a good part of a century now, these tanks have remained unused, shrouded in a forest.
- The Lower Tank Farm (LTF) has 16 tanks, spread across 50 acres.
- In 2003, Indian Oil Corporation set up its Sri Lankan subsidiary called Lanka IOC, to work on this oil farm.
- Currently, Lanka IOC runs 15 tanks. The new agreement is being negotiated for the remaining tanks.
Historical background
- Trincomalee harbor is the second deepest natural harbor in the world.
- The British who were in control of the island decided to make this as their primary logistics station in the east after World War I.
- It is also a lesser-known but important logistic station during World War II.
- British started the oil storage project in 1924 and completed in late 1930s.
- After that it was abandoned by the British in 1948 when Sri Lanka gained independence.
- In 2002, the development of this tank farm was revived by an Indian company Indian Oil Corporation (IOC).
India’s interest in Trincomalee
- The development of the Trincomalee Oil Tank farm has been a recurring talking point in Indo-Lanka relations since 1987.
- It was first mentioned in the Indo- Lanka Accord signed by PM Rajiv Gandhi and President Jayewardene.
- Despite that, nothing really took off until 2003, when Indian Oil Corporation set up Lanka IOC, its Sri Lankan subsidiary.
- The agreement remained dormant for years, until the Sirisena- Wickremesinghe administration tried revisiting it through the 2017 MoU.
Significance of Trincomalee
- Demography: Trincomalee is home to 3.7 lakh Muslim, Tamil and Sinhala people and Trincomalee, in Sri Lanka’s post-war years.
- Tourism: It has emerged as a favorite destination for surfers from around the world, gradually transforming with plush resorts and restaurants dotting its coast.
- Important sea route: Trincomalee remains in spotlight as a potential transit point for international trade routes, particularly drawing India which has known strategic interests there.
- Balancing China: From India’s geostrategic viewpoint, Trincomalee is an important counterbalance to the southern Hambantota Port backed substantially by China.
Issues in India-Sri Lanka Relations
- China’s Intervention: China’s rapidly growing economic footprint (and political clout as a corollary) in Sri Lanka is straining India-Sri Lanka relations.
- China is already the largest investor in Sri Lanka, accounting for 23.6% of the total Foreign Direct Investment (FDI) during 2010-2019 as against 10.4% from India.
- China is also one of the largest export destinations for Sri Lankan goods and holds over 10% of its external debt.
- China is also handling Hambantota Port of Sri Lanka, the port is viewed as a part of China’s String of Pearls Strategy.
- Katchatheevu Island Issue: India ceded the uninhabited island to its southern neighbour in 1974 under a conditional accord.
- However, many times the fisherman issue arises more out of a domestic tussle rather than the India-Sri Lanka view on the issue.
- 13th Amendment of the Sri Lankan Constitution: Indo-Sri Lankan Accord was signed in 1987 to provide a political solution to Sri Lanka’s conflict.
- It envisages devolution of necessary powers to the provincial councils to address the just demand of the Tamil people for equality, justice, peace, and respect within a united Sri Lanka.
- The provisions of this accord were made in the Sri Lankan constitution, by the Thirteenth Amendment.
- However, still the provisions are not implemented on ground. Even to this day, s lot of Srilankan Tamils who evaded from Srilankan civil war (2009) are seeking refuge in Tamil Nadu.
- Back Tracing of Sri-Lanka: Recently, Sri Lanka backed out from a tripartite partnership with India and Japan for its East Container Terminal Project at the Colombo Port, citing domestic issues.
Way Forward
- Nurturing the Neighbourhood First policy with Sri Lanka is important for India to preserve its strategic interests in the Indian Ocean region.
- Indian foreign policy towards Sri Lanka, as part of its ‘Island Diplomacy’, will also have to evolve in tune to the emergent realities and threats.
- Both countries can also cooperate on enhancing private sector investments to create economic resilience.
India-Sri Lanka Cooperation: Recent Developments
- Four-Pillar Initiative: Recently, India and Sri Lanka agreed to a four-pronged approach to discuss initiatives on food and energy security to help mitigate Sri Lanka’s economic crisis.
- This Four-Pillar Initiative comprises Lines of Credit, currency swap agreement, Modernisation Project (like The Indian Housing Project) and Indian Investments.
- Joint Exercises: India and Sri Lanka conducted joint Military (Mitra Shakti) and Naval exercise (SLINEX).
- Participation in Groupings: Sri Lanka is also a member of regional groupings like BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) and SAARC in which India plays a leading role.
- SAGAR Vision: Srilanka supports India’s concern for the security of the Indian ocean with its ‘Neighbourhood First’ policy and SAGAR (Security and Growth for all in the Region).
Source: The Hindu
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