- Sri Lanka signs Trincomalee oil tank deal with India, giving a big blow to Dragon
- India and Sri Lanka to jointly build Trikomali oil tank complex
- Former Prime Minister Rajiv Gandhi had dreamed of these oil tanks being built very close to Tamil Nadu.
Sri Lanka, pauped from China’s debt trap, has made a deal with India for the Trincomalee oil tank, giving a big blow to the dragon. India and Sri Lanka will jointly build the Trikomali oil tank complex. Under the strategic agreement, Trinco Petroleum Terminal Limited will develop 61 oil tanks in collaboration with Ceylon Petroleum Corporation and Indian Oil Corporation. Former Prime Minister Rajiv Gandhi had first dreamed of these oil tanks being built very close to the Indian state of Tamil Nadu.
The cabinet of the Gotabaya Rajapaksa government of Sri Lanka has approved the construction of Trincomalee oil tank project with India. This deal was first mentioned in the India-Sri Lanka agreement on 29 October 1987. It was said that both the countries would jointly develop this tank, but even after 35 years, this agreement was hanging. At that time there was also an exchange of letters between Rajiv Gandhi and the then President of Sri Lanka, JR Jayawardene.
America wanted to make Trincomalee port a naval base
Due to the ongoing civil war in Sri Lanka, this agreement was kept in abeyance for about 15 years. After this the civil war ended in 2002 under Norwegian mediation. Then there were reports that the US wants to make Sri Lanka’s Trincomalee port a naval base so that logistics can be easily reached in Afghanistan. After this the Indian High Commissioner visited Trincomalee. This oil tank dates back to the time of World War II, where one million tonnes of oil can be kept.
Trincomalee port is near this oil tank storage. Trincomalee is the nearest port to Chennai. China had been eyeing this area of Sri Lanka for a long time. Sri Lanka has signed this agreement at a time when the financial and humanitarian crisis in Sri Lanka has deepened. Inflation has reached record levels due to China’s debt trap, food prices have risen wildly and government coffers are rapidly emptying. It is feared that Sri Lanka may go bankrupt this year.
Sri Lanka’s back broke while repaying China’s debt
How did this condition of Sri Lanka happen? There are many reasons for this. The tourism sector of the country was badly affected due to the Corona crisis. At the same time, increased government spending and tax cuts made the situation worse. Sri Lanka’s back broke while repaying China’s debt from above. The foreign exchange reserves in the country reached the lowest level in a decade. The government has to print money to pay off domestic loans and foreign bonds.