Modi is scheduled to arrive on Friday evening and will be the inaugural global leader welcomed by Sri Lankan President Anura Kumara Dissanayake since he assumed office in September.
India aims to enhance its energy and defense collaboration with Sri Lanka and encourage investments during Prime Minister Narendra Modi’s two-day official visit to the island nation, where New Delhi is vying with China for increased influence.
Modi is scheduled to arrive on Friday evening and will be the first international leader welcomed by Sri Lankan President Anura Kumara Dissanayake since he assumed office in September.
In light of the financial crisis that struck in 2022, Sri Lanka is eager to draw foreign investment to stabilize its economy, during which India extended $4 billion in financial support.
India stands as one of Sri Lanka’s principal bilateral lenders, having agreed to restructure approximately $1.36 billion in loans following the island nation’s debt default in May 2022.
“The purpose of Prime Minister Modi’s visit is to reinforce the enduring relationship between Sri Lanka and India,” stated the Sri Lankan president’s office.
During this visit, agreements will be signed in critical areas such as energy, digitalization, security, and healthcare, along with arrangements concerning India’s debt restructuring support for Sri Lanka.
In their initial meeting in New Delhi last December, the leaders discussed investment opportunities in Sri Lanka, including plans for India to supply liquefied natural gas and assist in connecting power grids.
The discussions also included the development of a regional energy and industrial hub in eastern Trincomalee. In January, Dissanayake mentioned that negotiations were underway for a joint venture to construct an oil refinery there, focusing on exports, according to local media reports.
Once completed, this project could intensify competition between India and China, as the Chinese state energy company Sinopec has already signed a contract to establish a $3.2 billion oil refinery in Sri Lanka’s southern port city of Hambantota.
The Indian Oil Corporation, managed by New Delhi, is currently the second-largest fuel supplier in the country, following the state-owned Ceylon Petroleum Corporation.
India’s foreign ministry has not provided any comments regarding whether the proposed Trincomalee refinery will be part of the discussions this week.
In a press briefing prior to the visit, officials informed reporters that Modi would participate in a groundbreaking ceremony for a 120-megawatt solar power initiative involving the Ceylon Electricity Board and India’s National Thermal Power Corporation (NTPC.NS).
The ministry expressed its intention to finalize a defense cooperation agreement with Sri Lanka. Discussions held in December had included plans to supply arms to Sri Lanka to enhance its defense capabilities.
