COLOMBO, Sri Lanka – In a major step towards enhancing regional energy security, Sri Lanka, India, and the United Arab Emirates (UAE) have signed a pivotal agreement to transform Trincomalee into an energy hub. This announcement was made during Indian Prime Minister Narendra Modi’s official visit to Colombo, which further solidified the growing ties between the three nations.
HVDC Interconnection for Power Export/Import: A significant agreement was signed between Sri Lanka and India for a high-voltage direct current (HVDC) interconnection that will facilitate the export and import of electricity between the two nations. This project has been in the works for several years and is expected to significantly enhance energy exchange and security in the region.
Multi-Product Fuel Pipeline: Prime Minister Modi also revealed plans for a multi-product fuel pipeline running between Trincomalee and India, which will bolster fuel supply and distribution.
Strategic Role of Trincomalee: The port city of Trincomalee, with its strategic location and infrastructure, is set to become a central player in the regional energy sector. Trincomalee is home to 99 World War II-era oil tanks, some of which are currently used by the Sri Lanka unit of the Indian Oil Corporation. The Ceylon Petroleum Corporation (CPC) has allocated some of these tanks for its own use, with a joint venture company managing the rest.
Oil Refinery Proposal: As part of the ongoing energy development, Sri Lanka has proposed the establishment of an oil refinery in Trincomalee, which would further enhance the city’s role as an energy hub.
Several important MoUs were signed to further cooperation between the three countries:
- HVDC Interconnection MoU – A collaboration between India and Sri Lanka for the implementation of the HVDC interconnection for power export and import.
- Digital Solutions for Transformation MoU – A partnership between India’s Ministry of Electronics and Information Technology and Sri Lanka’s Ministry of Digital Economy to share successful digital solutions for large-scale transformation.
- Energy Hub Development MoU – An agreement between India, Sri Lanka, and the UAE to develop Trincomalee as a regional energy hub.
- Defence Cooperation MoU – A pact between India and Sri Lanka aimed at enhancing defense collaboration and security.
- Eastern Province Development MoU – A multi-sectoral grant assistance agreement to support the development of Sri Lanka’s Eastern Province.
- Health & Medicine Cooperation MoU – An MoU between India’s Ministry of Health and Sri Lanka’s Ministry of Health & Mass Media to strengthen cooperation in the fields of health and medicine.
- Pharmacopoeial Cooperation MoU – A collaboration between the Indian Pharmacopoeia Commission and Sri Lanka’s National Medicines Regulatory Authority for pharmaceutical development.
Strategic Impact
The development of Trincomalee as an energy hub is poised to have a significant impact on regional energy infrastructure, improving energy security, and fostering deeper economic and strategic ties between Sri Lanka, India, and the UAE. The multi-pronged cooperation underscores the nations’ shared vision for regional growth and stability.