Summary:
India, Sri Lanka and the United Arab Emirates (UAE) have entered into a strategic collaboration to transform Sri Lanka’s Trincomalee region into a key “energy hub,” aimed at enhancing Colombo’s energy independence and spurring economic resurgence. This trilateral Memorandum of Understanding (MoU) was finalised after extensive deliberations between Indian Prime Minister Narendra Modi and Sri Lankan President Anura Kumara Dissanayake. As a complementary step, India and Sri Lanka have also inked a separate pact focused on establishing cross-border electricity grid connectivity under the broader framework. Foreign Secretary Vikram Misri confirmed that this tripartite MoU paves the path for selecting both public and private sector entities to oversee the commercial aspects of the partnership.
The core objectives of the agreement include ensuring cost-effective energy, upgrading energy infrastructure and opening new streams of revenue through exports. A major initiative under consideration is a multi-product pipeline. under-utilised, including several currently operated by Lanka IOC, a subsidiary of Indian Oil Corporation, are expected to be brought back into active use as part of this development initiative. With the UAE as a strategic collaborator, the project gains the benefit of financial investment and technical proficiency, enhancing its overall potential. The MoU outlines future assessments to determine commercial feasibility, financing structures and actionable strategies, which will be carried out by designated business entities. As part of the wider energy partnership, Indian Prime Minister Narendra Modi and Sri Lankan President Anura Kumara Dissanayake came together to officially launch the Sampur solar power project, reinforcing the growing collaboration between India and Sri Lanka in the renewable energy sector. This threenation initiative stands as a landmark achievement in regional energy diplomacy and infrastructure advancement.
Source: IBEF
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