INDIA-SRI LANKA ECONOMIC TIES

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• The energy project is the second major venture in Sri Lanka involving the Adani Group, after it bagged a strategic port terminal deal in Colombo.
• The Group was brought in to execute the West Container Terminal project at the Colombo Port, with majority stakes, after Colombo unilaterally cancelled a trilateral agreement among the governments of Sri Lanka and India and Japan to jointly build the East Container Terminal at the same port.
• The Adani Group, Sri Lankan Ministers have said, was the Indian government’s “nominee” in both cases, indicating there was no competitive bidding process.
• Further, India is also executing hybrid energy projects in three islands off Jaffna Peninsula, after displacing a Chinese energy project.