India to supply LNG to Sri Lankan power plants, connect power grids

Sri Lankan President Anura Kumara Dissanayake is on a three-day visit to India for bilateral talks centred around economic cooperation, defence collaboration, and energy connectivity

India plans to supply liquefied natural gas (LNG) to Sri Lankan power plants, Prime Minister Narendra Modi announced during a press briefing on Monday. PM Modi and Sri Lankan President Anura Kumara Dissanayake, elected in September, also announced a series of collaborative initiatives to boost bilateral ties during the Sri Lankan leader’s three-day visit (December 15-17) to India.

 

Talks centred around economic cooperation, defence collaboration, and energy connectivity, to promote regional stability and development between the two nations. The talks also mark the Sri Lankan president’s first visit to India.

 

India to supply LNG to Sri Lanka

India plans to supply LNG to Sri Lankan power plants, with Indian state-run Petronet LNG set to deliver LNG to Colombo-based LTL Holdings for five years via the Kochi terminal. Both nations also agreed to connect their power grids and construct a multi-product petroleum pipeline to enhance energy security.

 

 

Additionally, the countries will jointly develop offshore wind power in the Palk Straits, complementing ongoing investments by Adani Green Energy Ltd, which has earmarked $442 million for two wind power stations in the region.

 

India-Sri Lanka: Defence and security

Highlighting shared security interests, Modi announced plans to conclude a defence cooperation agreement soon. Both leaders emphasised the importance of the Colombo Security Conclave for regional peace and stability, with agreements on enhancing maritime security, counter-terrorism efforts, cyber-security, and disaster relief operations.

 

“We believe that the Colombo Security Conclave is an important platform for regional peace, security and development. Under this, cooperation will be enhanced on topics like maritime security, counter-terrorism, cyber-security, fight against smuggling and organised crime, humanitarian assistance and disaster relief,” Modi said.

 

India-Sri Lanka: Economic development

Modi also reiterated India’s commitment to investment-led growth and connectivity in Sri Lanka, including advancements in physical, digital, and energy infrastructure. To support Sri Lanka’s recovery from its economic crisis, India has provided $5 billion in credit lines and grants.

 

Key development projects include:

• Rehabilitation of the Maho-Anuradhapura railway section’s signalling system
• Support for the Sampur Solar Power Plant
• Development of the Kankesanthurai Port

 

Efforts will also focus on finalising the Ekta trade agreement and a memorandum of understanding to complete Sri Lanka’s debt restructuring process.

 

Sri Lanka’s economic crisis and fisherman issues

President Dissanayake thanked India for its support during Sri Lanka’s unprecedented economic crisis, especially in the debt restructuring process. 

The Sri Lankan President said, “We faced an unprecedented economic crisis some two years ago and India supported us immensely to come out of that quagmire.”

 

“India has achieved tremendous success in digitising the public services. So, likewise, Sri Lanka is also taking the same path. PM Modi assured me of support in that endeavour,” he added.

 

The President also spoke on the need for a sustainable solution to the fishermen’s issue, highlighting the detrimental impact of bottom trawling on the region’s marine ecosystem.

 

“We also want to find a durable and sustainable solution to the fishermen's issue that has become a plague for both our countries. There are bottom trawling systems being adopted by the fishermen in that area and that needs to be put an end to because that will spell doom to this industry.” he said. “This visit has paved the way for further cooperation between our countries,” said President Dissanayake.