India to supply LNG and lay petroleum pipelines to island neighbor
India plans to supply liquefied natural gas (LNG) to neighboring Sri Lanka and will work on connecting the countries’ electricity grids, as well as laying a petroleum pipeline between the two nations, Prime Minister Narendra Modi announced on Monday.
These and other initiatives aimed at boosting ties between the two countries were announced at a joint press briefing with Sri Lankan President Anura Kumara Dissanayake, who is in New Delhi for his first official foreign trip since winning the presidency in September and securing a parliamentary election victory last month.
Addressing the media on Monday alongside Dissanayake, the Indian prime minister stated that both nations agreed to focus on “investment-led growth” and “physical, digital, and energy connectivity” as key pillars of their economic partnership.
The Indian state-run company Petronet LNG signed a deal in August to supply LNG to Sri Lanka for five years through its terminal in the southern Indian city of Kochi. The island nation’s government also signed an agreement to develop infrastructure for storage, regasification, and LNG supply for a combined cycle power plant with Petronet. This, along with plans to build a multi-product pipeline from India to Sri Lanka for the supply of affordable and reliable energy, aims to help facilitate the island nation’s economic recovery.
Ceremonial Welcome at Rashtrapati Bhavan pic.twitter.com/Lnvo7SwZDm
— Anura Kumara Dissanayake (@anuradisanayake) December 16, 2024
During the public remarks, Dissanayake expressed gratitude for India’s continued support for the project despite the ongoing debt restructuring process. He further welcomed India’s decision to extend assistance for projects originally funded through lines of credit, which will help alleviate Sri Lanka’s debt burden. According to Modi, New Delhi has provided lines of credit worth $5 billion to Colombo.
Earlier this year, India along with France, Japan, and China came forward to help Sri Lanka restructure its external debt, marking a significant step in the island nation’s economic recovery after it defaulted on its debt repayments in 2022. Sri Lanka is currently under an International Monetary Fund (IMF) bailout program.
The Indian and Sri Lankan leaders also vowed to cooperate more closely on various aspects of regional security. “President Dissanayake and I are in full agreement that our security interests are interconnected,” Modi said, announcing that the two leaders had decided to finalize agreements on cooperation in security and hydrography. Dissanayake reiterated Colombo’s position of not permitting its territory to be used in any manner inimical to the security of India, as well as towards regional stability.
Modi and Dissanayake also discussed issues related to the livelihoods of fishermen amid a prolonged dispute over fishing rights around Kachchatheevu Island in Palk Bay. “We agree that we must proceed with a humanitarian approach to this matter,” Modi remarked.
