India urges swift rollout of Sri Lanka energy hub project

India has urged Sri Lanka to accelerate work on a long-planned regional energy hub during high-level talks held in Colombo on Sunday.

Colombo: India has urged Sri Lanka to accelerate work on a long-planned regional energy hub during high-level talks held in Colombo on Sunday.

The proposed project, centred around the strategic port city of Trincomalee, was a key topic of discussion between Sri Lankan President Anura Kumara Dissanayake and India’s Foreign Secretary Vikram Misri.

Speaking after the meeting, Misri stressed the urgency of moving forward with the initiative. He said there was “no further time to lose” in implementing strategic energy projects that could benefit the region.

The energy hub, being developed in collaboration with the United Arab Emirates, has been under discussion since 2023. It includes plans for a multi-product oil pipeline linking India and Sri Lanka, as well as the development of oil storage infrastructure in Trincomalee.

The project builds on an existing agreement signed last year between the three countries after prolonged negotiations. It aims to strengthen regional energy security and improve supply chain resilience.

Trincomalee already houses a large oil storage facility dating back to the colonial era, consisting of 99 storage tanks. However, only a small number of these tanks are currently operational under an earlier arrangement with an Indian energy company.

Officials say expanding the facility into a fully functional energy hub would significantly enhance storage capacity and allow for better management of fuel supplies.

The urgency surrounding the project has grown due to recent global energy disruptions. Sri Lanka, which depends entirely on imports for its oil and much of its power generation needs, has been facing rising fuel and electricity costs.

The increase in prices has been linked to ongoing tensions in the Middle East, where conflict has disrupted global energy markets and driven up costs.

Indian officials noted that had the Trincomalee hub already been operational, it could have helped mitigate the impact of supply shocks and price volatility.

In addition to the oil hub, both countries are also exploring further energy cooperation. These include plans for a potential oil refinery and a cross-border power transmission line to enable electricity sharing.