On Thursday, Sri Lankan President Ranil Wickremesinghe embarks on a two-day trip to New Delhi with the goal of fostering closer economic connections between the region’s nations.
Energy, power, and port projects of strategic importance will be covered at his meeting with Indian Prime Minister Narendra Modi on Friday, according to officials from both nations.
Wickremesinghe will update New Delhi on the status of efforts to stabilise the island’s crisis-hit economy during his visit to India, which will be his first since assuming the presidency a year ago when his predecessor was forced to resign in the face of intense demonstrations. The assistance of India was crucial for Sri Lanka last year after it nearly ran out of money and fell into a financial crisis that left it unable to pay for imports of basic necessities like fuel and medication. Between January and July 2022, India offered nearly $4 billion in emergency aid, including credit lines, a currency swap agreement, deferred import payments, and a warship carrying critical medications for the island’s 22 million residents.
The little island nation has historically had close links with its southern neighbour, but because of its advantageous location in the Indian Ocean, it has evolved into a battleground between India and China.
An deal for development projects in the northeastern coastal city of Trincomalee as well as another agreement for renewable energy projects would be unveiled during the visit, according to an Indian official who spoke anonymously because he was not authorised to speak to press.
According to information provided by his office, Wickremesinghe revealed a plan for Trincomalee in October that included a suggestion to collaborate with India to create a strategic port, a new industrial area, and an energy hub.
The two countries will also create a joint statement to boost Sri Lanka’s dairy industry.
According to authorities on both sides, enhancing connection between the two nations will also take centre stage during the bilateral discussions.
According to officials on both sides, the two sides have held preliminary conversations for two projects that may cost a combined $4 billion or more: an undersea cable connecting their power systems and a petroleum pipeline from southern India’s peninsula to northern Sri Lanka.
According to foreign minister Ali Sabry, Colombo will concentrate on grid connectivity with India, port development, and renewable energy projects, mostly in the northern half of the island.
It will also be discussed how the debt restructuring process is going, according to Bandula Gunawardena, Sri Lanka’s transport minister and cabinet spokesman. India is a significant creditor of the island, owing it $1.9 billion in unpaid debt.
India is a part of a group founded with Japan and other Paris Club members to help the island restructure its debt after Sri Lanka went into default on its foreign debt in May.
India’s government-run NTPC is developing a 100-megawatt solar power facility in the Trincomalee area.
In February, the Sri Lankan government also authorised two wind power facilities on the country’s northwest coast that would have cost Adani Green Energy Ltd. of India $442 million in total.
