India and Sri Lanka: New Energy Supplies and Cooperations

Indian Prime Minister Narendra Modi announced a series of energy policy initiatives to strengthen ties with Sri Lanka. The plan includes supplying liquefied natural gas to power plants in Sri Lanka, connecting the power grids of both countries, and constructing an oil pipeline. These initiatives were presented during a press conference in New Delhi, jointly held by Modi and Sri Lankan President Anura Kumara Dissanayake. Dissanayake is making his first official visit to India as President after winning the election by a significant majority in September. An agreement between the Indian state-owned company Petronet LNG and the Sri Lankan engineering firm LTL Holdings provides for the delivery of liquefied natural gas from the terminal in Kochi to power plants in Colombo for five years. Additionally, both sides discussed plans to connect their power grids and install a multipurpose pipeline. Another central topic was the joint development of offshore wind power in the Palk Strait. Adani Green Energy plans to build two wind farms in the region with an investment volume of $442 million. Sri Lanka is currently reviewing this wind power project along with a $553 million terminal project in Colombo Port, also involving Adani Ports. However, it remains unclear if these projects were discussed during the meeting. The Adani Group, accused by US authorities last month of alleged bribery and misleading investors, denies the accusations as "baseless" and announced plans to take legal action. Amid a severe economic crisis, India granted Sri Lanka over $4 billion in assistance in 2022. In July, a preliminary agreement on debt restructuring was reached with Japan and China. Both countries now intend to finalize the bilateral memorandum necessary for the completion of the restructuring process.