INDIA – SRI LANKA RELATIONS

March 30, 2022

India will set up hybrid power projects in three islands off Jaffna, effectively replacing the Chinese venture cleared by Colombo last year.

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The MoU for the project was among those signed during a meeting between visiting External Affairs Minister (EAM) S. Jaishankar and his Sri Lankan counterpart G.L. Peiris.
It is the third Indian energy project coming up in Sri Lanka’s north and east, after the recent agreements for National Thermal Power Corporation’s solar venture in the eastern Sampur town, and the Adani Group’s renewable energy projects in Mannar and Pooneryn in the north.
In January 2021, Sri Lanka’s Cabinet decided to award renewable energy projects in Nainativu, Delft or Neduntheevu, and Analaitivu islands to Chinese firm Sinosoar-Etechwin.
India was quick to express concern over the Chinese project coming up in the Palk Bay, barely 50 km off Tamil Nadu. India offered to execute the same project with a grant rather than a loan.
Meanwhile, India and Sri Lanka have also agreed to set up a Maritime Rescue Coordination Center. The initiative, involving Bharat Electronics and a $6 million Indian grant, obtained Cabinet approval last week.
India will also help develop fisheries harbours in Point Pedro, Pesalai and Gurunagar in the Northern Province, and Balapitiya, south of Colombo, apart from supporting schools in the southern Galle district with computer labs, extending a grant for Sri Lanka’s Unique Digital Identity project.