The Sri Lankan government will propose a business plan to develop the China Bay oil storage facility in Trincomalee with Indian assistance, with the aim to make the town a regional petroleum hub.
The secretary to the Ministry of Power and Energy, Dr. B.M.S Batagoda told the Business Times that a ten member task force currently formulating the business plan, aimed at harnessing the full potential of the facility.
The Lanka Indian Oil Corporation (LIOC) and the Ceylon Petroleum Corporation (CPC) have agreed to jointly develop the Upper Tank Farm at China Bay in Trincomalee "on mutually acceptable terms", he said.
Under the Indo-Lanka peace accord signed in July 1987, other countries are barred from taking over the facility and the work of restoring and operating the oil tank farm has to be done through a joint venture by India and Sri Lanka.