Sri Lanka-India ties reach new heights
Daily FT: Ties between Sri Lanka and India have reached a new high following the successful visit by Prime Minister Narendra Modi who reinforced his country’s commitment to strengthen relations aided by additional support.
After an eventful three days, Modi flew back in what was a historic visit, being the first global leader to set foot in Sri Lanka following the election of President Anura Kumara Disanayake and the NPP Government, whose members previously castigated the giant neighbour and her overtures to undermine Sri Lanka.
Accompanying Indian Prime Minister Modi were Indian External Affairs Minister Dr. S. Jaishankar, National Security Advisor Ajit Doval, Foreign Secretary Vikram Misri and a delegation of senior officials from the Indian Government.
A key highlight of Modi’s visit was the launch of three development projects – construction of the Sampur Solar Power Plant to add 50 Megawatts to the national grid, the Dambulla Temperature and Humidity Controlled Agro Cold Storage complex, and the Project to Install Solar Panels on 5,000 religious sites.
The Sampur Solar Power Plant is part of the Eastern Renewable Energy Zone, which is being established under Sri Lanka’s Long-Term Generation Expansion Plan (LTGEP). It is being developed by Trincomalee Power Company, a joint venture between India’s NTPC Ltd. and the Ceylon Electricity Board (CEB).
The project is planned in two phases, with the second phase scheduled to commence in 2027. A 500-acre land area has been allocated for this initiative, under the first phase it will contribute 50 megawatts of electricity to the national grid. The project will incorporate state-of-the-art N-type TOPCon solar cell technology, enhancing energy security and promoting a shift from fossil fuel dependency to renewable energy sources. Consequently, the Sampur Solar Power Project is expected to reduce annual carbon dioxide emissions by approximately 2 lakh tonnes.
The Dambulla Agricultural Storage Complex (Cold Storage Facility), with a capacity of 5,000 metric tons and equipped with temperature and humidity control, was inaugurated today with the objective of reducing post-harvest losses by approximately 40%, stabilising fluctuations in agricultural product prices, ensuring the supply of high-quality food to consumers and enhancing agricultural sustainability.
The project to install solar panels on 5,000 religious sites spans all 25 districts and includes places of worship representing all major religions. The Government of India has invested $ 17 million in this initiative, which is being implemented jointly by the Ceylon Electricity Board, the Sri Lanka Sustainable Energy Authority and Lanka Electricity Company Ltd. Under this project, 5,000 solar panel systems with a capacity of 5 kW each will be installed on the rooftops of Buddhist, Hindu, Muslim, Catholic and Christian places of worship.
Seven Memoranda of Understanding (MoUs) between India and Sri Lanka, covering several key sectors, were exchanged as well in the presence of President Disanayake and Indian Prime Minister Modi.
Marking a new chapter in Indo-Sri Lanka relations, these agreements focus on enhancing cooperation in the fields of energy, digitalisation, defence, healthcare, and development assistance.
OSL take:
Sri Lanka and India enjoy strong bilateral, business and trade ties that have been further strengthened by Indian Prime Minister Narendra Modi’s recent visit to Sri Lanka. The two countries enjoy an operational free trade agreement (FTA) that would e further strengthened by the proposed Economic and Technological Comprehensive Agreement (ETCA) with India. The signing of seven MoUs and launching of several Indian funded and joint projects with India during Modi’s visit indicates the close collaborations between Sri Lanka and India. While many Indian businesses operate in Sri Lanka, the growth and profits recorded by them indicates the resilient, growing and business conducive nature of Sri Lanka, which is on a path to becoming a hub in the South Asian region. Sri Lanka’s geographical positioning in the Indian Ocean and the strong trade ties enjoyed with many foreign countries have also added to the country’s many attractions to foreign businesses/investors. Given the close ties between Sri Lanka and India, Indian businesses/investors could confidently explore the expanding business/investment opportunities in Sri Lanka while also looking at expanding operations through partnerships or joint ventures with local businesses. On the other hand, other foreign businesses/investors interested in doing business with India could look at setting up bases in Sri Lanka to engage with India using the preferential treatment enjoyed by Sri Lanka in India.
| Article Code : | VBS/AT/20250408/Z_2 |