In a bid to generate global interest and attract foreign and domestic investment, Sri Lanka proposes to transform its Trincomalee port into an industrial hub. The long-standing plan is aimed at monetizing land owned by the Sri Lanka Port Authority through the creation of a special economic zone, an industrial park, or an energy hub.
About Trincomalee Port
Located on the northeastern coast of Sri Lanka on the Trincomalee Bay—formerly referred to as Koddiyar Bay, Trincomalee harbour is the closest port to Chennai, India. The port has gained attention from various countries such as India, Japan, and the US due to its strategic location in the Indian Ocean. This was emphasized when Japan commissioned a 2020 study by the Asian Development Bank (ADB) on the development prospects of Trincomalee port.
Significance of Trincomalee Port
Trincomalee port already hosts several dedicated terminals, including the Lanka Indian Oil Company facility, a grain facility for a flour factory, Tokyo Cement facility, and a tea terminal. Furthermore, it has a jetty for bulk cargo such as coal, gypsum, and cement. The planned development aims to decongest Colombo Port, a move that would significantly improve its supply chain operations. Additionally, the port’s development includes plans for managing non-containerized cargo traffic, which primarily consists of cement, coal, or other industrial raw materials.
Implications for India
From India’s perspective, Trincomalee port presents several lucrative opportunities. Being one of Asia’s finest natural harbours, it serves as a potential asset to India’s maritime capabilities. It also has the strategic appeal of balancing China’s influence in the Indian Ocean Region, especially as China already has access to Hambantota Port. If Indian companies participate in the port’s development, Indian maritime trade routes in the region stand to gain a significant boost.
Earlier this year, an agreement was signed between Lanka Indian Oil Company and Ceylon Petroleum Corporation to develop an extensive oil storage tank farm at Trincomalee, originally built during British rule. This deal is expected to supplement the proposed transformation of the port.
Looking Forward: Projected Benefits
Due to its natural deep-water harbour, shelter, ample land for industrial and logistics operations, and unique tourist attractions in proximity, Trincomalee port is well-positioned to cater to the projected growth of maritime cargo trade in the region. This is particularly relevant concerning the development of ports in Bangladesh and Myanmar and along India’s eastern seaboard.
A joint project with India to develop Trincomalee port aligns with Sri Lanka’s domestic ethnic considerations and could help the nation avoid a potential debt trap with China, provided it proves successful.
UPSC Civil Services Examination: Previous Year Question (2018)
In the 2018 UPSC Civil Services Examination, examinees were asked to match several regions with their respective countries. The correct combination concluded that Catalonia is in Spain, Crimea was a Ukrainian territory annexed by Russia in 2014, Mindanao is the second-largest island in the Philippines, and Oromia region is predominantly inhabited by the Oromo ethnic group, Ethiopia’s largest ethnic group.
