Narendra Modi’s fourth visit to Sri Lanka from the fourth visit was a tripartite agreement as the Prime Minister – including the UAE – to develop the coastal district of Trinakomali in the northeastern part of the country as an energy hub. Traditionally, while announcing the project in the Tamil-Bahul region, a multi-product pipeline would include, Modi said that all Sri Lankan people would benefit from it.
With its natural port and energy features, Trincomli is a great strategic value for India as a strong presence will also allow it to increase the impact in the Northeast Indian Ocean. The announcement is after earning an investment of $ 3.7 billion from Sri Lankan’s Chinese oil veteran Sinopec, the largest foreign direct investment in the country, which is for an oil refinery in the Southern Hambentota region during Lankan President Anura Disnayak’s visit to Beijing earlier this year. For India, it is necessary that China, which has discovered energy projects in islands away from the Jaffna Peninsula in the past, is not allowed to enter the northern and eastern parts of the country.
India already has an agreement with Sri Lanka to develop Trincomali oil tank farms and India can develop more under the new MoU. Foreign Secretary Vikram Misri said that the proposed energy hub is an initiative designed to ensure the energy security of Sri Lanka, which is a provision of energy at affordable rates, and possibly to contribute to the revenue for the country through energy exports. As a major strategic and energy partner, the UAE was an ideal partner for its first project in the region.
According to its growing strategic convergence, India and UAE agreed to work jointly on development projects in third countries in 2018.
Misri said, “What will happen accurately about the role of UAE, it will be something that is going to expand after Kicking B2B discussions under this MoU.”
“The immediate next step that will be enabled by this framework MoU is identity and enrollment of specific agencies and institutions that can be government institutions or private sector institutions or can be institutions related to government-related institutions to realize and feel the business-to-business part of the agreement,” the official said.
