• RCS Ottawa

Sri Lanka's oil firm workers strike over India deal

Thousands of Sri Lankan motorists were queuing for fuel on Monday after workers at the state-run oil firm went on strike, demanding the government scrap a deal which they say would give India too much influence over fuel prices.

Unions said the strike was to stop a deal that puts 99 oil tanks in the island nation's eastern port city in the hands of Lanka IOC, a subsidiary of Indian Oil Corporation.

Sri Lanka has agreed with India to jointly develop and operate all oil tanks in the oil storage facility located in the port town of Trincomalee near the world's second deepest natural harbour.


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