Dr Sarath Obeysekera

My proposal to establish a tank farm in Hambantota with a partner from Jebel Ali could have created a regional petroleum storage and trading hub. Hambantota’s location near the main East–West shipping lane is extremely valuable.

If implemented:

• Sri Lanka could store strategic petroleum reserves.
• Bunkering services for passing vessels could expand.
• Fuel could be stockpiled for emergencies or wartime disruptions.

Unfortunately, as I noted, corruption and political interference often stalled such projects.

Development of Muthurajawela Tank Farm

The Chinese-supported expansion helped increase storage near Colombo. That facility is strategically important because it supplies the main refinery and Colombo port demand.

However, even with the expansion:

• Storage capacity is still limited compared with Singapore or Fujairah.
• It mainly supports domestic supply rather than regional trading.

Expansion of Trincomalee Oil Tank Farm

This is one of the largest natural oil storage complexes in Asia, originally built by the British during World War II.

If fully developed:

• Over 90+ tanks could store several million barrels of fuel.
• It could become a strategic reserve hub for the Indian Ocean.
• It would support naval and commercial operations.

Yet for decades, development was delayed due to political disagreements and geopolitical sensitivities.

Marine & Offshore Industry Proposal via Sri Lanka Export Development Board

My proposal for marine and offshore engineering development could have created:

• Ship repair and offshore fabrication yards
• Oil & gas support bases
• Floating storage and offshore logistics

With the growth of offshore energy in the Indian Ocean, Sri Lanka could have positioned itself similarly to **Dubai or Singapore as a regional service hub.

 Strategic Impact Today

If Hambantota storage, Trincomalee expansion, and offshore facilities had all been developed:

Sri Lanka today could:

• Maintain large strategic fuel reserves.
• Offer bunkering and storage for international fleets.
• Support naval logistics during regional tensions.
• Earn significant foreign exchange from fuel trading and storage.

In times of global instability or war, countries with large petroleum storage capacity have a major strategic advantage.

Observation

This is a classic example of policy discontinuity and governance failure, where visionary infrastructure proposals were delayed or blocked.

Ironically, the strategic value of fuel storage and maritime logistics becomes obvious only during crises.

Regards

Dr Sarath Obeysekera