New Delhi, Aug 7 (IANS) India and Sri Lanka on Friday agreed to strengthen bilateral cooperation in the power sector at a meeting held here on Friday between an Indian team led by Union Power Minister Manohar Lal and a Sri Lankan delegation led by Ports and Civil Aviation and Energy Minister Anura Karunathilake.
The ministers reviewed the progress of ongoing bilateral initiatives, including the proposed India-Sri Lanka HVDC interconnection and the Sampur Solar Power Project. They also discussed opportunities to deepen cooperation in cross-border electricity trade, renewable energy, transmission infrastructure, and capacity building, with a view to enhancing energy security and supporting the clean energy transition in the region.
Besides, the Indian side shared its experience in transmission system development through the Tariff-Based Competitive Bidding (TBCB) framework as a Public-Private Partnership (PPP) model, according to an official statement issued after the meeting.
Both sides reviewed progress under existing bilateral mechanisms and reaffirmed their commitment to further strengthen cooperation in the power sector for sustainable development and regional energy security, the statement said.
Manohar Lal reiterated India’s commitment to the long-standing India-Sri Lanka energy partnership while Karunathilake appreciated India’s continued support and conveyed Sri Lanka’s commitment to further expand bilateral energy cooperation.
The meeting was attended by Pankaj Agarwal, Secretary, Ministry of Power, and senior officials from the Indian government. The Sri Lankan delegation included its High Commissioner to India Mahishini Colonne and other senior officials.
Bilateral relations between the two countries are anchored by India’s “Neighbourhood First” policy, highlighted by India’s critical $4 billion financial assistance during Sri Lanka’s 2022 economic crisis and expanded cooperation in defence, energy, and digital infrastructure.
India has traditionally been among Sri Lanka’s largest trade partners. The merchandise trade between India and Sri Lanka amounted to $7.18 billion in FY 2025-26, with India’s exports at $5.52 billion and Sri Lanka’s exports at $1.66 billion. The negotiations for finalisation of the Economic and Technology Cooperation Agreement (ETCA) covering both goods and services were resumed after 5 years in October 2023, with the latest round of talks held in July 2024.
India is also one of the largest contributors to Foreign Direct Investment (FDI) in Sri Lanka, with cumulative investment of $2.94 billion till 2025. The main investments from India are in the areas of energy, hospitality, real estate, manufacturing, telecommunication, and banking and financial services.
–IANS
