The 14 oil tanks in Trincomalee has been given over to India without signing any agreement at a fee of Rs. 100 per tank, it is reported.

According to the agreement signed on February 17, 2003, it had been agreed to give over 14 of the 99 oil storage tanks for a period of 35 years.

This agreement was officially supposed to have been signed after six months, but 14 years on, an official agreement has still not been signed.

According to former Petroleum Resources Minister Arjuna Ranatunge, the Indian Oil Company is paying the CPC $100 per year for leasing the 14 oil tanks.

Accordingly, they pay the CPC $ 7.1 per tank per year (at the exchange rate of Rs. 170 per dollar) which amounts to Rs. 1270 per tank annually.

The storage capacity per tank is 12,500 litres.

However, according to a senior CPC official, as this is a process that had been initiated several years ago at diplomatic level, the issues have to be resolved at diplomatic level.