Colombo: India's leading industrialist Ratan Tata will hold talks with Sri Lankan Prime Minister Ranil Wickremesinghe to discuss possible investments by the Tata group in the island nation.

Sri Lanka's Constitutional Affairs Minister G L Peiris said on February 20 that the visit of Ratan Tata, chairman of the Tata group, was a part of the moves to step up Indian investments in the island nation in the backdrop of peace efforts with Tamil Tiger rebels.

"The mood of the international investor community is reflected in the visit by Mr Ratan Tata," Peiris told reporters in Colombo.

"There are several other Indian companies that have similarly shown interest in investing here," he added.

The Lankan Prime Minister and Tata were expected to discuss possible investments in the manufacture of motor spare parts and small vehicles in Sri Lanka, which does not have a vehicle industry of its own.

Tata's visit follows state-owned Indian Oil Corporation Limited (IOCL) having secured a deal with Ceylon Petroleum Corporation (CPC) to lease an oil storage tank farm in Sri Lanka's North Eastern port town of Trincomalee.

IOCL's fully owned Sri Lankan operation known as Lanka IOC Private Limited is expected shortly to begin operating 100 gas stations across the country. Besides, IOCL has announced plans to set up a pipeline for distribution of petroleum products within Sri Lanka and to link the island with India through a submarine oil pine line.

Sri Lanka expects another Indian investment delegation next month when it hosts the island's biggest trade fair in two decades.

PTI