Modi's India aims to strengthen energy and defence ties during Sri Lanka visit
India wants to promote investment and strengthen defence and energy ties with Sri Lanka during Prime Minister Narendra Modi’s two-day visit to the island country, where New Delhi is competing with China for more influence.
Modi will arrive in Sri Lanka on Friday night. He is the first world leader to be hosted by Anura Kumara dissanayake since he assumed office.
Sri Lanka wants to attract foreign investments to stabilize its economy following a financial crisis that occurred in 2022 during which India contributed $4 billion.
India is one of Sri Lanka’s major bilateral lenders. It agreed to restructure approximately $1.36 billion worth of loans when the island nation defaulted in May 2022.
The Sri Lankan President's Office said that the visit of Prime Minister Modi aims to reinforce the longstanding relations between India and Sri Lanka.
It was reported that during the visit, pacts will be signed in key sectors, such as digitalisation, energy, security, and healthcare, as also agreements related to India’s debt restructuring assistance to Sri Lanka.
The leaders met for the first time in New Delhi, India in December. They discussed investment in Sri Lanka as well as plans to provide liquefied gas to Sri Lanka.
In addition, the talks included development of an energy and industrial hub for eastern Trincomalee. Dissanayake told local media that the two had been in discussions about a joint venture to build an oil refinery.
The project, when completed, would spark competition between India, and China. Sinopec, China's state-owned energy company, has signed a contract to build a $3,2-billion oil refining facility in Hambantota, Sri Lanka's southernmost port city.
Indian Oil Corp, a company based in New Delhi, is the second largest fuel supplier behind Ceylon Petroleum Corp.
The Indian foreign ministry has not commented on whether or not the proposed Trincomalee Refinery will be discussed in this week's discussions.
In a press briefing before the visit, it told reporters that Modi would attend a ceremony for the breaking of ground on a 120 megawatt solar project between the Ceylon Electricity Board (CEB) and India's National Thermal Power Corporation.
The ministry stated that it hopes to conclude an agreement with Sri Lanka on defence cooperation. Discussions in December had envisaged the provision of arms to Sri Lanka for its defence capability. (Reporting and editing by Clarence Fernandez in New Delhi, with Shivam Patel from New Delhi)
(source: Reuters)
