GS Paper 2:
Topics Covered: India and neighbourhood relations.
Context:
Recently, Sri Lanka announced that the Indian Oil Subsidiary Lanka IOC would be given 49% stake in the joint development of the Trincomalee Oil Tank farm, with Ceylon Petroleum Corporation keeping 51%.
Why has this become a historical deal?
35-year-old agreement: If it goes according to plan, India and Sri Lanka would have finally achieved the implementation of an agreement — contained in an exchange of letters between then Prime Minister Rajiv Gandhi and Sri Lankan President J R Jayewarndene as part of the annexure to the India-Sri Lanka Accord of July 29, 1987 — that the tank farm would be developed jointly.
Why does Trincomalee matter?
The pre-WWII era oil storage facility has a capacity of nearly 1 million tonnes, which far outstrips the demand in Sri Lanka.
- Strategic Location in the Indian Ocean: Located inland from China Bay, the facility was meant to be serviced by the natural harbour at Trincomalee.
- Easily Accessible: In 2010-2011, officials had pitched for refurbishing the tank farm as an extension of Indian Oil storage on the Indian east coast, or for developing it as a refuelling facility to small ships. Trincomalee is the nearest port to Chennai.
- Balancing China: From India’s geostrategic viewpoint, Trincomalee is an important counterbalance to the southern Hambantota Port backed substantially by China.
Therefore, India’s interest is to prevent a third country from entering the 850-acre facility.
About the Indo-Lanka Accord:
- It is popularly referred to as the Rajiv-Jayewardene Accord.
- It was signed in 1987 on the pretext of the Civil War in Sri Lanka (between Tamils and Sinhala community).
- The accord sought to balance India’s strategic interests, interest of people of Indian origin in Sri Lanka and Tamil minority rights in Sri Lanka.
- The accord saw the placement of the Indian Peace Keeping Force (IPKF) in Sri Lanka to resolve the Sri Lankan Civil War.
- The accord also resulted in enactment of the thirteenth Amendment to the Constitution of Sri Lanka and the Provincial Councils Act of 1987.
Insta Curious:
What is Sri Lanka’s 19th amendment to the constitution? Reference: read this.
Sources: Indian Express.
