India, UAE To Build Energy Hub in Sri Lanka’s Trincomalee, Rival China’s Influence
April 5, 2025: India, UAE Join Hands for Energy Hub in Sri Lanka’s Trincomalee Amid China Push
In a strategic move to deepen regional influence and counter China’s expanding footprint, India and the United Arab Emirates have signed a pact with Sri Lanka to jointly develop an energy hub in Trincomalee. The agreement was sealed during Prime Minister Narendra Modi’s visit to Colombo—his first since Anura Kumara Dissanayake became Sri Lankan President in September 2024.
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The initiative marks a significant milestone in India-Sri Lanka relations, as the island nation continues its recovery from the devastating 2022 financial crisis. India had earlier stepped in with $4 billion in aid to stabilize its southern neighbor.
The Trincomalee project—set in a strategically crucial natural harbour on Sri Lanka’s east coast—will feature a multi-product pipeline and potentially utilize an existing World War II-era oil tank farm, partly controlled by Lanka IOC, the local arm of Indian Oil Corporation.
Foreign Secretary Vikram Misri, speaking in Colombo, emphasized that the UAE’s long-standing partnership with India in the energy sector made it the ideal collaborator for this venture, which will be the first of its kind in the region. Business-to-business discussions will soon begin to finalize funding and feasibility details.
The announcement intensifies competition with China, whose state-backed firm Sinopec has already committed to a $3.2 billion oil refinery project in Hambantota—a southern Sri Lankan port city with deep Chinese investments.
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In addition to the Trincomalee hub, PM Modi inaugurated a $100 million solar power project in partnership with Sri Lanka’s Ceylon Electricity Board and India’s NTPC. The two nations also announced the successful completion of their debt restructuring process, covering $1.36 billion owed by Sri Lanka to Indian institutions.
Other agreements signed include pacts on cross-border power grid connectivity, digital cooperation, security, and healthcare—signaling a renewed and multi-dimensional partnership between India and Sri Lanka.
Tags:
India Sri Lanka UAE energy hub, Trincomalee project, India UAE Sri Lanka agreement, PM Modi Sri Lanka visit, China in Sri Lanka, Hambantota Sinopec refinery, India China competition Indian Ocean, Sri Lanka financial crisis, India Sri Lanka solar project, EXIM Bank of India loans, NTPC Sri Lanka project, Vikram Misri Trincomalee, Colombo news, India foreign policy Indian Ocean, Sri Lanka infrastructure deals
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