India-UAE Plan Energy Hub in Sri Lanka Amid China Rivalry

India-UAE: As New Delhi’s rivalry with China intensifies in the Indian Ocean island nation, the Ministry of External Affairs said on Saturday that India and the United Arab Emirates had reached an agreement to establish an energy hub in Sri Lanka. During Prime Minister Narendra Modi’s first visit to Sri Lanka since President Anura Kumara Dissanayake entered office in September, the three countries signed the agreement for the hub.

As India’s southern neighbor recovers from a catastrophic financial crisis that was precipitated in 2022 and during which India contributed $4 billion in financial assistance, New Delhi and Colombo have moved to strengthen their relationship. The agreement inked on Saturday increases New Delhi’s competition with China, whose state energy company Sinopec has agreed to construct a $3.2-billion oil refinery in Hambantota, a port city in southern Sri Lanka.

India, UAE eye strategic energy project in Sri Lanka:

Foreign Secretary Vikram Misri told reporters in Colombo that the energy hub in the strategically significant city of Trincomalee, a natural harbor in the east of Sri Lanka, will entail the construction of a multi-product pipeline and may involve the use of a World War Two tank farm that is partially owned by the Indian Oil Corp. subsidiary in Sri Lanka.

Indian diplomat Vikram Misri said, “The UAE is a strategic partner for India in the energy space and therefore was an ideal partner for this exercise that is being done for the first time in the region.” He also said, “The exact contours of UAE’s role will be elaborated once the business-to-business discussions kick-off.” Following this he added that the three nations will choose the businesses which are going to boost the hub.

Take A Look At The Photos:

ஜனாதிபதி அநுரகுமார திசாநாயக்க அவர்களுடன் கொழும்பில் விரிவானதும் பயனுள்ளதுமான பேச்சுகளில் ஈடுபட்டிருந்தேன். சில மாதங்களுக்கு முன்னர், ஜனாதிபதியாக பதவியேற்றபின்னர் தனது முதலாவது வெளிநாட்டு பயணத்துக்காக ஜனாதிபதி அநுர குமார திசாநாயக்க அவர்கள் இந்தியாவை தெரிவுசெய்திருந்தார். தற்போது,… pic.twitter.com/7h5roeIQyO

— Narendra Modi (@narendramodi) April 5, 2025

PM Modi unveils $100M solar plant:

Additionally, PM Modi launched a $100 million solar power plant that was a joint venture between India’s National Thermal Power Corp. and the Ceylon Electricity Board. According to Foreign Secretary Misri, India and Sri Lanka have also completed their debt restructuring procedures. According to data from the Sri Lanka Finance Ministry, Sri Lanka owes around $1.36 billion in loans to the State Bank of India and the EXIM Bank of India.

India-Sri Lanka seal key deals:

After defaulting on its debt in May 2022, Colombo signed a preliminary agreement with bilateral creditors China, India, and Japan in June, initiating debt restructuring negotiations. Apart from this the India and Sri Lanka have signed agreements on Power Grid Connectivity, digitalization, security, and healthcare.