Sri Lanka set to launch energy hub talks with India and UAE

Sri Lanka will begin work next month on plans to develop an energy hub in partnership with India and the United Arab Emirates, the country's energy minister announced on Friday. The move is part of Sri Lanka’s strategy to leverage its strategic location and accelerate recovery from its recent financial crisis.

The three nations signed an agreement to create the hub during a visit earlier this month by Indian Prime Minister Narendra Modi, marking the first visit by a global leader since President Anura Kumara Dissanayake took office last September.

President Dissanayake won the election on promises of restoring stability following the country's worst financial crisis in decades, which had triggered runaway inflation, a currency collapse, and a default on $25 billion of debt.

The new energy hub, located in the eastern harbor city of Trincomalee, will include the construction of a multi-product pipeline, bunkering facilities, and potentially a new refinery. It will also involve the development of a World War II-era storage tank farm, partially owned by the Sri Lankan subsidiary of Indian Oil.

Representatives from Sri Lanka’s state-run Ceylon Petroleum Corporation, Indian Oil, and Abu Dhabi’s AD Ports Group are set to meet in late May to begin discussions on a detailed business plan, Energy Ministry Secretary Udayanga Hemapala said.
"A joint project monitoring committee has been established to oversee the development of the business plan and finalize detailed proposals," Hemapala told Reuters.

Separately, President Dissanayake discussed broader energy cooperation this week with UAE Deputy Prime Minister and Foreign Minister Sheikh Abdullah Bin Zayed Al Nahyan.

Meanwhile, China’s state energy firm Sinopec has signed a deal to build a $3.2 billion oil refinery in the southern port city of Hambantota.