In a bold new move, the Sri Lankan government has unveiled plans to transform Trincomalee into a regional energy powerhouse by opening up its dormant oil tanker complex to foreign investors including giants from India and the UAE.
At the heart of the plan is a proposed joint venture between the Ceylon Petroleum Corporation (CPC), Lanka IOC, and a UAE-based firm. A committee is set to draft a detailed business proposal to assess the feasibility of launching this ambitious venture, which, if successful, could modernize Sri Lanka’s energy infrastructure and inject much-needed foreign capital into the struggling economy.
“The vision is to build a common user terminal,” explained CPC’s Managing Director Mayura Netthikumarage. “Once operations begin and the infrastructure is set, more investors will be drawn in. Nobody wants to invest in a jungle, but everyone wants a piece of a gold mine.”
The Trincomalee oil tank farm, with 99 massive tanks (each capable of holding 12,500 metric tons), currently remains underutilized. Only 24 tanks are used by CPC, while 12 are operated by Lanka IOC. The remaining 63 lie dormant, a potential treasure trove for energy investors.
Initial efforts to revamp the tankers began in January 2022, when a $70 million deal between CPC and Lanka IOC birthed the Trinco Petroleum Terminal Ltd. However, the momentum stalled amid the nation’s financial collapse and mounting political criticism of foreign involvement in national assets.
Now, under President Anura Kumara Dissanayake’s administration, the project is being revived, but not without controversy. Critics from the opposition are warning against leasing such a strategic asset to foreign powers. In response, President Dissanayake addressed the nation, assuring that “no final agreement has been signed.” He emphasized that the signed memorandum of understanding is purely to explore the potential and draft a business plan. Any binding deal, he insisted, would only happen with consensus.
Highlighting Trincomalee’s world-class natural harbor, one of the few in the world capable of hosting large vessels close to shore, Dissanayake underscored its geopolitical and economic importance. The government is adamant that turning Trincomalee into an energy hub is not just a development opportunity, but a national necessity.
With the groundwork being laid and international eyes on the port, Sri Lanka could soon be sitting on an energy goldmine. But whether it turns into a boom or becomes another battleground in the country’s polarized politics remains to be seen.
