The UAE, India and Sri Lanka have formalised a Memorandum of Understanding (MoU) to develop Trincomalee, a strategic port city in northeastern Sri Lanka, into a regional energy hub.
The MoU outlines plans for refurbishing the World War II-era Trincomalee Oil Tank Farm, initiating bunker fuel supply projects, and exploring the construction of a new refinery. Designated agencies—Abu Dhabi Ports Group (AD Ports) from the UAE, Indian Oil Corporation Limited (IOCL), and Ceylon Petroleum Corporation (CPC)—will form a joint venture to oversee these projects. Additionally, the agreement includes the development of a bi-directional petroleum pipeline between India and Sri Lanka to enhance regional fuel logistics and security.
This collaboration signifies a strategic move by India and the UAE to strengthen their presence in Sri Lanka, especially in light of China’s growing influence in the region through investments like Sinopec’s $3.2 billion oil refinery project in Hambantota. The Trincomalee initiative is part of broader efforts to bolster energy security and economic ties among the three nations.
Indian Foreign Secretary Vikram Misri highlighted the significance of the UAE’s involvement, noting its role as a strategic energy partner for India. He indicated that the UAE’s specific contributions would be detailed in forthcoming business-to-business discussions.
The agreement was signed during Indian Prime Minister Narendra Modi’s visit to Sri Lanka, marking the first visit by a world leader since President Anura Kumara Dissanayake assumed office in September. The visit also included the inauguration of a $100 million solar power project, a joint venture between Ceylon Electricity Board and India’s National Thermal Power Corporation.
