India Accelerates Push for Regional Energy Hub in Sri Lanka

India has called for faster progress on a proposed regional energy hub in Sri Lanka, as high-level bilateral talks got underway in Colombo.

The initiative, centred around the northeastern port of Trincomalee, was a key focus during discussions with Sri Lankan President Anura Kumara Dissanayake. Indian Foreign Secretary Vikram Misri emphasised the urgency of advancing strategic projects, noting that the long-discussed plan has been under consideration since 2023.

The project involves collaboration with the United Arab Emirates and aims to establish a multi-product oil pipeline linking India and Sri Lanka, alongside the development of an oil storage and distribution hub in Trincomalee.

Both sides agreed on the importance of expediting implementation, highlighting the project’s potential to strengthen regional energy security—particularly in light of global supply disruptions and rising energy prices.

Sri Lanka, which relies heavily on imported fuel and coal, has faced increased costs in recent months amid wider geopolitical tensions affecting global energy markets.

The Trincomalee site already houses a large oil storage facility dating back to the colonial era, though only a limited number of tanks are currently in use. Plans are also being explored to expand the project to include a refinery and potential electricity connectivity between the two countries.

Officials said advancing the energy hub would play a vital role in enhancing cooperation, improving supply resilience, and supporting long-term economic development in the region.