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CPC’s Trade Unions strike against proposed oil deal with India

(UDHAYAM, COLOMBO) – Workers’ of Sri Lanka’s state-run petroleum firm have begun an indefinite strike since early hours of this morning (24) against the Government’s proposed deal with India to jointly operate an oil storage facility at the strategic Eastern Port Town of Trincomalee.

Long lines of vehicles also formed since last night at fuel stations across the country after trade unions announced the strike.

Sri 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 Press Trust of India reported.

The workers have 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 operations rights to oil tanks to India since the agreement would benefit the Lanka IOC, 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 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.

At least 73 of the 99 storage tanks in Trincomalee is 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 after President Maithripala Sirisena has reportedly turned down a request for a meeting to discuss the issue.

Prime Minister Ranil Wickremesinghe, who will visit India on April 25, had said that the development of Eastern Port District of Trincomalee will be discussed during his visit.

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