Tuesday, 02 January 2024 12:17 GMT

India, Sri Lanka Hold Talks on Setting Up Cross-Border Oil Pipeline


(MENAFN) India and Sri Lanka have entered discussions over the construction of an oil pipeline linking the two neighboring nations, with Indian Foreign Secretary Vikram Misri confirming the talks took place Sunday between Vice President C. P. Radhakrishnan and Sri Lankan President Anura Kumara Dissanayake.

"Some initiatives that are underway from the Indian side and some proposals that have already been discussed between the two countries, notable amongst them, the project related to the energy hub in Trincomalee and the proposal to link India and Sri Lanka through an oil pipeline," Misri said on Sunday.

The pipeline project — which also involves the United Arab Emirates — has been under discussion since 2023. It received formal backing in April 2025, when Sri Lanka, India, and the UAE signed a trilateral agreement to construct the pipeline and establish an oil storage complex in Trincomalee, with India and the UAE jointly developing the broader energy hub.

Misri underscored the timeliness of the energy-focused discussions, noting they were taking place at a moment when the world "is facing the fallout of an energy crisis."

Beyond energy, the high-level talks encompassed a wide range of bilateral priorities, including housing projects, the fishing industry, a digital identification initiative, and the long-discussed Economic and Technology Cooperation Agreement (ETCA). Radhakrishnan also reviewed the ongoing rollout of Indian-funded development projects in Sri Lanka, with particular focus on the $450 million aid package extended by New Delhi following Cyclone Ditwah last year.

Sri Lankan President Dissanayake took the opportunity to recognize India's pivotal support during Sri Lanka's severe economic crisis in 2022 and its rapid response in the aftermath of Cyclone Ditwah.

Radhakrishnan's two-day visit marks a historic first — no Indian vice president has previously traveled to Sri Lanka. Several memoranda of understanding are expected to be formally exchanged before the visit concludes, the Sri Lankan Foreign Ministry confirmed in a statement.

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