India, Sri Lanka to boost bilateral ties through energy, power and port projects

Sri Lankan President Ranil Wickremesinghe is on a two-day visit to India. On Friday, he held talks with the Indian Prime Minister Narendra Modi, and the two nations announced their agreement to enhance economic ties by increasing cooperation in renewable energy and exploring the feasibility of constructing an oil pipeline and a land bridge between the two countries.

Additionally, New Delhi will be assisting in the development of a port and an economic hub in Trincomalee, a city located on Sri Lanka's northeastern coast.

Wickremesinghe's two-day visit to New Delhi marks his first since assuming the presidency a year ago, following the removal of his predecessor amidst widespread protests against the economic crisis.

Economic partnership, renewable energy and more

Following the meeting, Modi stated that the two leaders have "adopted a vision document for our Economic Partnership," which aims to strengthen connectivity in maritime, air, energy, and people-to-people interactions. The document also seeks to accelerate cooperation in tourism, power, trade, higher education, and skill development.

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Furthermore, the leaders expressed their commitment to swiftly connect their electricity grids and assess the viability of constructing a petroleum pipeline and a land bridge between the two countries, which are approximately 50 km (31 miles) apart at one point.

Officials from both sides estimate that the projects to connect the power grids through undersea cables and build the oil pipeline will cost around $4 billion in total. However, few details were provided regarding the agreements on renewable energy.

Wickremesinghe emphasised that constructing a multi-product petroleum pipeline from southern India to Sri Lanka would ensure a reliable and affordable energy supply for Sri Lanka.

The two countries reportedly also plan to resume negotiations on a more comprehensive trade agreement known as the Economic and Technological Cooperation Agreement.

As per Reuters, Wickremesinghe also updated Modi on the reform measures being implemented by his government to address Sri Lanka's financial crisis and expressed gratitude for India's support during this challenging period.

Sri Lankan financial crisis and India's help

As per Reuters, India's support, amounting to nearly $4 billion between January and July of the previous year, played a crucial role in helping Sri Lanka overcome a financial crisis that had depleted its foreign reserves and hindered its ability to finance essential imports such as fuel and medicine.

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Last year, the South Asian nation defaulted on its foreign debt, and India, along with Japan and other Paris Club members, established a common platform to assist the country in restructuring its debt.

India remains a significant creditor to Sri Lanka, with outstanding debt amounting to $1.9 billion.

(With inputs from agencies)

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