By Original: Sri LankaVectorization: Zscout370, Mike Rohsopht - SLS 1:
Sri Lanka is set to commence next month on initiatives to establish an energy hub in collaboration with India and the United Arab Emirates, as stated by the energy minister on Friday. This endeavor aims to capitalize on the nation’s strategic position to facilitate recovery from a financial crisis. The agreement to form the hub was signed during a recent visit by India’s Prime Minister Narendra Modi, marking the first visit by a global leader since President Anura Kumara Dissanayake assumed office last September. Dissanayake secured his election with promises of stability following a severe financial crisis three years ago that led to soaring inflation, a significant depreciation of the local rupee, and a default on $25 billion in debt.
The project will also involve the development of a World War II-era storage tank facility, partially owned by the Sri Lankan branch of Indian Oil. In late May, representatives from state-owned Ceylon Petroleum, Indian Oil, and AD Ports will convene in Sri Lanka to initiate discussions on a comprehensive business plan for the hub, according to Energy Ministry Secretary Udayanga Hemapala.
A joint project monitoring committee has been established to supervise the formulation of the business plan and ultimately finalize detailed proposals. Additionally, President Dissanayake engaged in discussions regarding energy cooperation in Colombo this week with UAE Deputy Prime Minister and Foreign Affairs Minister Sheikh Abdullah Bin Zayed Al Nahyan, as reported by the president’s office. Furthermore, Chinese state energy company Sinopec has entered into an agreement to construct a $3.2 billion oil refinery in Sri Lanka’s southern port city of Hambantota.
