UAE, India, Sri Lanka sign deal to develop Sri Lanka into energy hub

The UAE, India, and Sri Lanka have signed an agreement to develop Sri Lanka into a strategic energy hub. 

The UAE Ministry of Investment, the Indian Ministry of Petroleum and Natural Gas, and Sri Lanka’s Ministry of Energy signed the deal to develop Trincomalee.

The agreement sets a framework for collaboration on a range of infrastructure and energy projects in Trincomalee, including the refurbishment and development of the Trincomalee Tank Farm, bunker fuel supply initiatives, and the possible development of a new refinery project.

As part of implementing the refinery project, the UAE, India, and Sri Lanka have designated their authorised agencies: Abu Dhabi Ports Group PJSC (AD Ports), Indian Oil Corporation Limited (IOCL), and Ceylon Petroleum Corporation (CPC).

These agencies will establish a Joint Venture Company to oversee project execution. The agreement also includes the construction of a bi-directional petroleum pipeline between India and Sri Lanka, strengthening regional logistics and fuel security.

Mohamed Hassan Alsuwaidi, UAE Minister of Investment, said: "This MoU exemplifies the UAE’s commitment to strategic regional partnerships that promote diplomacy, long-term economic resilience and sustainable infrastructure development. Together with our partners in India and Sri Lanka, we aim to unlock the full potential of Trincomalee as a key energy and logistics gateway for South Asia."

Vikram Misri, the Foreign Secretary of India, added: " A significant initiative that imparts a truly strategic character to the India - UAE relationship and is geared towards strengthening their partnership with Sri Lanka."