India and the United Arab Emirates have signed an agreement to jointly develop an energy hub in Sri Lanka, the Ministry of External Affairs said on Saturday, underscoring New Delhi’s efforts to strengthen its regional foothold as it faces growing competition from China in the island nation
The tripartite agreement was formalised during Prime Minister Narendra Modi’s visit to Colombo — the first by a world leader since Sri Lankan President Anura Kumara Dissanayake assumed office in September.
Business entities from the three countries will be selected next to evaluate project feasibility and funding, Misri added.
During the visit, PM Modi also inaugurated a $100 million solar power plant developed jointly by India’s National Thermal Power Corp and the Ceylon Electricity Board.
Sri Lanka initiated talks with its creditors after defaulting on its external debt in May 2022. A preliminary agreement with bilateral lenders — India, Japan and China — was signed in June last year.
Additionally, the two countries signed agreements on cross-border power grid connectivity, digital cooperation, security, and healthcare.
