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The Indian High Commission in Colombo has rejected news reports which said that the lease agreement between India and Sri LAnka with regard to the Trincomalee oil storage tanks has been scrapped.

Energy Minister Udaya Gammanpila said on Wednesday (17) that Sri Lanka will re-acquire the oil storage tanks that were leased to a subsidiary of the Indian Oil Company.

However, in a statement on Thursday (18), the Indian High Commission said that there is no truth in reports in some sections of the media that the understanding between India and Sri Lanka on jointly developing and operating the Upper Tank Farm at Trincomalee has been ‘scrapped’.

"These reports did not correctly portray remarks made by the Minister of Energy of Sri Lanka at an event on 17 February 2021.  The Minister has himself clarified the matter in detail today through a press briefing," the statement said.

As indicated in the Minister’s briefing, the two Governments have consulted each other to explore mutually acceptable modalities for jointly developing and operating the facility in accordance with existing bilateral understandings, including the MoU of 2017, the Indian High Commission said, adding that "India looks forward to formal discussions on the matter, and expeditious implementation of their outcome to mutual benefit."