PM Modi Visits Sri Lanka; Launches Key Energy Partnership with UAE
On April 5, 2025, Indian Prime Minister Narendra Modi arrived in Colombo, Sri Lanka, receiving a ceremonial welcome at Independence Square. His visit marked the first official trip by a world leader since President Anura Kumara Dissanayake took office in September 2024.
India and UAE to Build Energy Hub in Trincomalee
During the visit, India, the UAE, and Sri Lanka signed a major agreement to develop a regional energy hub in Trincomalee, a strategic port city on Sri Lanka’s eastern coast. The plan includes constructing a multi-product energy pipeline and utilizing a World War II-era oil tank farm, partly operated by Indian Oil Corporation’s Sri Lankan arm.
India’s Foreign Secretary Vikram Misri said, “The UAE is a natural partner for India in the energy sector. This is the first initiative of its kind in the region.”
Strategic Move Amid India-China Competition
The project strengthens India’s presence in Sri Lanka’s energy sector, especially as China’s Sinopec is also investing in a $3.2 billion oil refinery in the southern port city of Hambantota. The Trincomalee initiative reflects India’s push to balance China’s growing influence in the Indian Ocean region.
Business Entities to Assess Feasibility
Next steps include selecting business partners from the three countries to study project financing and operational feasibility. Discussions will shape UAE’s exact role in the project during the upcoming business-to-business meetings.
Modi Launches $100 Million Solar Power Project
Alongside the energy pact, PM Modi also inaugurated a $100 million solar project, a joint venture between India’s NTPC and Sri Lanka’s Ceylon Electricity Board. The project boosts Sri Lanka’s clean energy capacity and aligns with India’s focus on sustainable energy partnerships.
India Supports Sri Lanka’s Financial Recovery
India reaffirmed its support for Sri Lanka’s economic revival after the country’s 2022 financial crisis, where New Delhi provided $4 billion in aid. Foreign Secretary Misri announced that both countries had successfully completed their debt restructuring negotiations. Sri Lanka’s debt to EXIM Bank of India and State Bank of India totals around $1.36 billion, according to the Sri Lankan Finance Ministry.
New Agreements Signed on Power, Digitalization, Security
India and Sri Lanka also signed cooperation pacts on electricity grid connectivity, digital infrastructure, security, and healthcare. These agreements aim to strengthen bilateral ties and support Sri Lanka’s development goals.
