Watt a Partnership! India & UAE Spark Energy Hub in Sri Lanka

India, the UAE, and Sri Lanka have signed a landmark agreement to develop Trincomalee as a regional energy hub, marking a significant step in strategic cooperation. The pact was formalized during Prime Minister Narendra Modi’s visit to Colombo, his first since Sri Lankan President Anura Kumara Dissanayake assumed office in September 2024.

The proposed hub will utilize Trincomalee's natural deep-water harbor to construct a multi-product pipeline and upgrade World War II-era oil tank farms partially owned by Indian Oil Corporation. The project aims to raise Sri Lanka's energy security, provide cheap energy, and usher in export revenue.

The three-way alliance is seen as an equilibrium to the growing presence of China in Sri Lanka, particularly its $3.2 billion Hambantota oil refinery project. India also ordered a $100 million solar power station and sealed debt restructuring negotiations with Colombo.

Source: Times of India, Reuters, Business Standard