Trinco threat to Indo-Lanka ties

The American company, Freeport Mcmoran, after acquiring the land would build a jetty and a terminal, it said quoting official sources. There was no official reaction here as yet but the report has caused flutter among the diplomatic community here as the Lankan government while exchanging letters preceding the Indo-Lanka accord in 1987 agreed not to permit the use of Trincomalee port by any country in a manner prejudicial to the Indian interests. Also, both the countries have agreed to develop sprawling Trincomalee oil storage tanks as a joint venture.

The Indian concerns at that time were related to keen interest evinced by the American defence establishment to convert the Trincomalee port into a naval base for its warships located in the Indian Ocean.

Trincomalee which was a deep water port with natural harbour was considered as strategic in addition to the American naval base at Diego Garcia. In view of this, the Sri Lankan government gave a commitment to India not to allow the port to be used for any hostile activities against India.

Allotment of such large tracts of land was bound to cause anxiety in political and diplomatic circles in India, informed sources here said.

Last year, the Sri Lankan government’s decision to appoint a three member tender board and a technical evaluation committee to work out modalities to lease over 100 British-built oil tanks at Trincomalee, has caused concern among the Indian diplomatic circles here. Of the 100 tanks, 35 were in operational condition and the rest needed extensive repairs.

The Indian oil companies specially the Indian oil corporations have evinced keen interest as they could make optimum use of the tanks to curb their freight costs by importing bulk quantities. At that, the government said Korean and Singapore companies were keen to take over the tanks. Though the committee was appointed in September last year, nothing was heard from it so far.