Dr Sarath Obeysekera

https://www.sundayobserver.lk/2026/06/28/business/79914/can-sri-lanka-afford-to-wait-for-trincomalee-port-development

Critical overview 

Trincomalee Must Become Sri Lanka’s Offshore Industry Capital – Not Just Another Commercial Port
The current debate on Trincomalee Port development has largely centred on logistics, container handling, oil storage, industrial zones, and real estate. While these sectors are important, they alone will not maximise the strategic and economic value of one of the world’s finest natural harbours.
Sri Lanka should adopt a broader vision by developing Trincomalee as a regional offshore engineering, ship repair, and floating energy infrastructure hub.
A Multi-Billion Dollar Global Industry
Across the world, hundreds of offshore assets require periodic maintenance, conversion, and upgrading. These include:
● Floating Production Storage and Offloading (FPSO) vessels
● Floating Storage and Regasification Units (FSRU)
● Offshore drilling rigs
● Production platforms
● Offshore support vessels
● Large crude oil tankers requiring life extension
● Wind farm installation vessels
Many ageing Very Large Crude Carriers (VLCCs) and Ultra Large Crude Carriers can be economically converted into FPSOs instead of being scrapped. Such conversions generate contract values ranging from several hundred million to over a billion US dollars depending on the scope.
Why Trincomalee?
Unlike constructing an entirely new shipyard, many offshore repair and conversion activities can initially be undertaken using:
● Deep natural anchorage
● Floating docks
● Heavy lift barges
● Modular fabrication yards
● Existing oil tank facilities
● Temporary construction berths
This significantly reduces capital investment while allowing operations to commence much earlier.
Skilled Employment
One FPSO conversion project employs thousands of personnel, including:
● Naval architects
● Marine engineers
● Welders
● Pipe fabricators
● Electricians
● Instrument technicians
● NDT inspectors
● Coating specialists
● Crane operators
● Divers
● Offshore safety personnel
● Project managers
These are exactly the high-income technical jobs Sri Lanka should be creating for its youth.
Integrating Education with Industry
Trincomalee should not merely host industrial facilities; it should become Sri Lanka’s centre for offshore engineering education.
Vocational institutes, universities, and engineering faculties should establish specialised programmes in:
● Offshore welding
● Subsea engineering
● Dynamic positioning systems
● Marine electrical systems
● Offshore safety (OPITO standards)
● Rope access
● NDT inspection
● Offshore fabrication
● Renewable offshore energy
Students should graduate with internationally recognised certifications, making Sri Lanka an exporter of skilled manpower.
Synergy with the Energy Hub
The proposed oil storage facilities, bunkering operations, pipelines, and future refinery should be integrated with:
● FPSO maintenance
● Offshore logistics
● Rig lay-up and preservation
● Marine fuel services
● Offshore supply bases
● Wind farm component fabrication
Rather than functioning as isolated projects, these facilities should support an integrated offshore industrial ecosystem.
A Neutral Indian Ocean Service Centre
Sri Lanka occupies a politically neutral and geographically strategic location between the Middle East, Africa, India, and Southeast Asia.
Offshore operators frequently seek alternative repair locations when existing yards are congested or affected by geopolitical tensions. Trincomalee could become a preferred destination for repair, retrofitting, and offshore engineering services.
The Way Forward
The Government should immediately invite Expressions of Interest from internationally recognised offshore engineering companies, FPSO operators, ship repair firms, classification societies, and heavy engineering investors.
Public-private partnerships can minimise Government expenditure while attracting technology, management expertise, and global clients.
The objective should not merely be to develop another port, but to establish South Asia’s premier offshore engineering and floating energy infrastructure hub.
If this opportunity is missed, neighbouring countries will continue to capture these high-value industries while Sri Lanka remains dependent on traditional port services and low-value logistics.
Trincomalee has all the natural advantages. What is required now is the vision to transform those advantages into a globally competitive offshore industrial economy.

Dr Sarath Obeysekera