India, Sri Lanka, and the United Arab Emirates (UAE) unveil ambitious initiative for energy cooperation

India, Sri Lanka, and the United Arab Emirates (UAE) have formalised a strategic agreement to develop Trincomalee in Sri Lanka as an "energy hub" to bolster Colombo’s energy security and contribute to its economic revival. The tripartite Memorandum of Understanding (MoU) was signed following comprehensive discussions between Indian Prime Minister Mr. Narendra Modi and Sri Lankan President Mr. Anura Kumara Dissanayake. India and Sri Lanka signed a separate agreement for an electricity grid interconnection project as part of this initiative. According to Foreign Secretary Mr. Vikram Misri, this trilateral MoU lays the groundwork for identifying and nominating relevant entities—governmental or private—to execute the business-to-business aspects of the cooperation.

The agreement focuses on energy affordability, infrastructure development, and potential revenue generation through exports. One of the key projects under discussion includes a proposed multi-product pipeline. Additionally, unused tank farms in Trincomalee—some already operated by Lanka IOC (a subsidiary of Indian Oil Corporation)—will likely be developed under this initiative. As a strategic energy partner to India, the UAE brings additional investment potential and expertise to the venture. The framework also includes future evaluations on project viability, financing, and execution strategy by designated business entities. In line with the broader energy collaboration, Indian Prime Minister Mr. Narendra Modi and Sri Lankan President Mr. Anura Kumara Dissanayake jointly inaugurated the Sampur solar power project, further strengthening Indo-Lankan renewable energy ties. This trilateral cooperation marks a significant regional energy diplomacy and infrastructure development milestone.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.