What happened?
Sri Lanka will begin developing an energy hub in Trincomalee with India and the United Arab Emirates. This initiative, agreed upon during Indian Prime Minister Narendra Modi’s visit, aims to leverage Sri Lanka’s strategic location. The project will include the construction of a multi-product pipeline, bunkering facilities, and potentially a refinery, and will also involve developing a World War II-era storage tank farm partly owned by the Sri Lankan subsidiary of Indian Oil. Representatives from Ceylon Petroleum, Indian Oil, and AD Ports are scheduled to meet in late May to discuss a detailed business plan.
Why it matters to India
Collaboration with Sri Lanka and the UAE to develop an energy hub enhances India’s energy security and regional influence. This project strengthens India’s ties with Sri Lanka and promotes economic development in the region.
