NEW DELHI: In a step reflecting growing strategic alignment in the Indian Ocean region, India, the United Arab Emirates (UAE), and Sri Lanka on Saturday signed an agreement to develop a multi-faceted energy hub in the eastern Sri Lankan city of Trincomalee.
The deal was formalized during Prime Minister Narendra Modi’s visit to Colombo—his first since President Anura Kumara Dissanayake took office in September—signifying regional cooperation amid increasing competition with China.
According to the government press release, "The Memorandum of Understanding (MoU) between the Government of the Republic of India, the Government of the Democratic Socialist Republic of Sri Lanka, and the Government of the United Arab Emirates for cooperation in the development of Trincomalee as an energy hub" was signed by Prof. K.T.M. Udayanga Hemapala, secretary, ministry of energy (Sri Lanka), and Vikram Misri, Foreign Secretary (India)
The proposed energy hub in Trincomalee—a natural deep-water harbour with historic strategic value—will include the construction of a multi-product pipeline and potential use of a World War II-era oil tank farm, partially operated by the Sri Lankan subsidiary of Indian Oil Corporation (IOC). It is expected to serve as a regional energy logistics centre, leveraging combined investment and technical expertise from India and the UAE.