Sri Lanka to Hold Energy Hub Talks with India, UAE

Sri Lanka to Begin Trincomalee Energy Hub Talks with India, UAE

Sri Lanka is set to begin formal discussions in late May on a major energy hub project in partnership with India and the United Arab Emirates (UAE), as part of its strategy to drive economic recovery following a severe financial crisis. The announcement came from Energy Ministry Secretary Udayanga Hemapala, who confirmed that representatives from Ceylon Petroleum, Indian Oil Corporation, and UAE’s AD Ports will convene in Colombo to shape a detailed business roadmap.

The proposed hub, to be developed in the strategically significant port city of Trincomalee on the island’s eastern coast, is expected to transform Sri Lanka into a key player in regional energy logistics. The plan includes the construction of a multi-product oil pipeline, bunkering (ship refueling) infrastructure, and possibly a new oil refinery. It also involves upgrading and utilizing the World War II-era oil storage tank farm in Trincomalee, which is partly owned by Lanka IOC, the local subsidiary of Indian Oil.

This trilateral initiative follows the agreement signed during Indian Prime Minister Narendra Modi’s recent visit — the first by a world leader since President Anura Kumara Dissanayake assumed office in September 2024. President Dissanayake came to power promising economic stability after the island’s worst financial turmoil in decades, which led to record inflation, currency collapse, and a sovereign debt default of $25 billion.

As part of the initiative, a joint project monitoring committee has already been established to supervise planning efforts and finalize the project proposal.

Further strengthening ties, President Dissanayake held talks this week in Colombo with UAE’s Deputy Prime Minister and Foreign Minister Sheikh Abdullah Bin Zayed Al Nahyan, focusing on future energy collaboration.

Chinese investment in Sri Lanka’s energy sector is also increasing at the same time. In an effort to demonstrate the island nation’s growing significance as a key energy center in the Indian Ocean, state-owned Sinopec has committed $3.2 billion to the construction of a massive oil refinery in the southern port of Hambantota.

Sri Lanka’s larger goal to reestablish itself as a major hub for energy logistics and refining in South Asia and beyond is reflected in this multi-nation partnership.