India and the UAE have agreed to create an energy hub in Sri Lanka. The deal was signed during Indian Prime Minister Narendra Modi’s visit. This is the first visit by a global leader since Sri Lanka’s new president took office.
The energy hub will be built in Trincomalee, a strategic city in eastern Sri Lanka. The project will include a multi-product pipeline and may use an old tank farm owned by Indian Oil. This move is part of India’s growing competition with China, which is building a refinery in Hambantota.
During his visit, Modi also launched a $100 million solar power project in Sri Lanka. This project is a joint venture between India’s National Thermal Power Corp and Sri Lanka’s Ceylon Electricity Board. It highlights India’s ongoing support for Sri Lanka’s recovery.
Additionally, the two countries completed debt restructuring talks. Sri Lanka owes about $1.36 billion to Indian banks. Both nations also signed agreements on power grid connectivity, digitalisation, and other key sectors.