Sri Lanka aims to begin working on a new energy hub next month in collaboration with India and the UAE. Sri Lanka’s Energy Minister announced on Friday, outlining a deliberate approach to boost the country’s post-crisis economic recovery.
An initial agreement for the energy hub was reached earlier this month during Indian Prime Minister Modi’s visit to Sri Lanka. Modi’s visit was the first by a world leader since Anura Kumara Dissanayake became president in September 2024.
President Dissanayake was elected on a promise of stability following the island’s severe financial crisis, and is currently leading attempts to rebuild economic strength after currency devaluation, high inflation, and a $25 billion debt default.
The energy hub will be built in the eastern port city of Trincomalee. It will include a multiproduct pipeline, enlarged bunkering facilities, and possibly a new refinery. There are also proposals to upgrade a World War II-era storage tank farm, which is partially controlled by Indian Oil’s Sri Lankan business.
Officials from Sri Lanka’s Ceylon Petroleum Corporation, Indian Oil, and AD Ports Group will meet in late May to develop a thorough business plan. A collaborative monitoring committee has been established to oversee project progress and finalise development recommendations.
