Sri Lankan petroleum firm workers oppose deal with India, to go on strike

Ceylon Petroleum Corporation (CPC) Trade Union Collective workers have threatened to cripple entire transportation sector in the island nation. Lanka and India are expected to sign an agreement to jointly invest and develop the Trincomalee Port and establish a petroleum refinery and other industries there. 

The workers have put forth three demands, which include getting the government to stop granting outright ownership of some 14 World War II oil storage tanks in the eastern port district of Trincomalee. The Petroleum Joint Union Alliance says it opposes the proposal to transfer operation rights of oil tanks to India since the agreement would benefit the Lanka IOC, an Indian Oil’s subsidiary, allowing it to expand further and the CPC, which is already in debt, will incur further financial losses.

They also asked the Sri Lankan government to shelve plans to build a new oil refinery with Chinese assistance in the southern port of Hambantota and to immediately begin repairing the existing refinery near Colombo. “We will be striking from tomorrow (Monday) and stop all fuel distribution in the country,” Bandula Saman Kumara, a spokesman for the trade unions, told reporters on Sunday. He said by mid-week the Colombo international airport would face the danger of becoming non-operational due to the fuel sector strike. 

At least 73 of the 99 storage tanks in Trincomalee are to be managed under a new equity arrangement between the two countries, Lankan Petroleum Minister Chandima Weerakkody had said earlier. 

The union has taken the decision to strike work after Sri Lankan President Maithripala Sirisena has reportedly turned down a request for a meeting to discuss the issue.

Meanwhile, Lankan Prime Minister Ranil Wickremesinghe, who will visit India on Tuesday (April 25), has said that the development of eastern port district of Trincomalee will be discussed during his trip.

Wickremesinghe will hold talks with Prime Minister Narendra Modi to further expand ties in a range of areas. 

Addressing reporters in the central town of Kandy on Saturday, Wickremesinghe said he was looking forward to strengthening economic cooperation with India. 

He said the development of eastern port district of Trincomalee will be discussed during the visit. “We have plans for an Indian LNG plant in Trincomalee. That could also be a joint venture with Japan,” the Prime Minister said. India and Sri Lanka will jointly operate the oil storage facility at the strategic eastern port town of Trincomalee.