India Gets Energy Deal from Sri Lanka After Chinese Firm’s Tender Is Cancelled

After canceling a contract that had been won by a Chinese company, Sri Lanka on Friday gave an Indian business the go-ahead to build three hybrid wind and solar power producing facilities. This decision comes after the project was temporarily shelved two years ago, when it was first funded by a loan from the Asian Development Bank (ADB).

This occurred in the midst of the island nation’s strategic competition for large-scale infrastructure projects, as it is now recovering from its greatest economic crisis since gaining its independence. Approximately 10% of Sri Lanka’s $46 billion foreign debt was owed by Beijing, the country’s biggest bilateral creditor, at the time of the island nation’s government default at the crisis’ height in 2022.

The Indian embassy said in a statement that India’s support for the energy agreement “underscored the significance New Delhi attached to bilateral energy partnership.” India: a faithful ally! Contract signing for the Hybrid Renewable Energy Project in Nainativu, Analaitivu, and Delft islands, near Jaffna, was witnessed by Hon. State Minister Indika Anuruddha and HC @santjha. The Indian embassy in Sri Lanka said in a post on X that “this grant project by India addresses the energy needs of the people of the three islands.”

Kanchana Wijesekara, Sri Lanka’s Energy Minister, stated in a statement that the project would build a 2,500 kw diesel power system, 1,700 kw solar power, 2,400 kWh of battery capacity, and 530 kw of wind power for the islands of Delft, Analativu, and Nainativu. The $11 million grant from the Indian government has allowed the project to be completely financed, according to a statement released by Sri Lanka’s energy ministry on Friday. It also said that the construction contract had been given to Bengaluru, India’s IT center, renewables company U-Solar.

Santosh Jha, the Indian ambassador in Colombo, attended the event. The deal was signed by the Sri Lanka Sustainable Energy Authority, the Indian government, and U Solar Clean Energy Systems, a Bengaluru-based business. According to authorities, India’s support for the project highlights the importance the Government of India places on bilateral energy partnerships and the human-centric character of development partnerships. The three islands’ inhabitants are not linked to the national grid.

A report on, a Sri Lankan news site, claims that India and Sri Lanka are now discussing a number of historic energy-related projects, including the multi-product two-way oil pipeline and power grid connectivity. It said that grants account for over 600 million of India’s total USD 5 billion in development partnership portfolio.

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