NEW DELHI: In a step reflecting growing strategic alignment in the Indian Ocean region, India, the United Arab Emirates (UAE), and Sri Lanka on Saturday signed an agreement to develop a multi-faceted energy hub in the eastern Sri Lankan city of Trincomalee.
The deal was formalized during Prime Minister Narendra Modi’s visit to Colombo—his first since President Anura Kumara Dissanayake took office in September—signifying regional cooperation amid increasing competition with China.
According to the government press release, “The Memorandum of Understanding (MoU) between the Government of the Republic of India, the Government of the Democratic Socialist Republic of Sri Lanka, and the Government of the United Arab Emirates for cooperation in the development of Trincomalee as an energy hub” was signed by Prof. K.T.M. Udayanga Hemapala, secretary, ministry of energy (Sri Lanka), and Vikram Misri, Foreign Secretary (India)
The proposed energy hub in Trincomalee—a natural deep-water harbour with historic strategic value—will include the construction of a multi-product pipeline and potential use of a World War II-era oil tank farm, partially operated by the Sri Lankan subsidiary of Indian Oil Corporation (IOC). It is expected to serve as a regional energy logistics centre, leveraging combined investment and technical expertise from India and the UAE.
“Trincomalee has immense potential to become a regional hub for energy cooperation,” Misri told reporters in Colombo. “The UAE is a strategic energy partner for India, making it an ideal collaborator for this first-of-its-kind initiative in the region,” he added.
The trilateral project adds a significant dimension to India’s efforts to strengthen its presence in Sri Lanka, especially as Beijing continues to assert influence through large-scale infrastructure projects, including the $3.2 billion oil refinery at Hambantota being built by China’s Sinopec, as reported by Reuters. India’s proactive engagement with Colombo, now augmented by the UAE’s participation, is widely seen as a calibrated response to counterbalance China’s footprint in the island nation.
