Plans move forward to transform Trincomalee into a strategic energy hub to aid economic recovery
Sri Lanka is preparing to launch discussions next month with India and the United Arab Emirates (UAE) to establish a major energy hub, the country’s Energy Minister announced on Friday.
The initiative is part of Sri Lanka’s broader strategy to capitalise on its strategic location and accelerate its economic recovery following a severe financial crisis, media reports said.
With the groundwork being laid, the Trincomalee project holds the potential to transform Sri Lanka into a key regional energy hub, supporting its economic resurgence and strengthening ties with strategic partners
The ambitious project will focus on developing multi-product pipelines, storage facilities, and potentially constructing a new oil refinery in Trincomalee, located on the island’s eastern coast. An initial agreement for this collaboration was signed during Indian Prime Minister Narendra Modi’s visit to Sri Lanka—his first overseas trip since Anura Kumara Dissanayake assumed the presidency in September last year. President Dissanayake, who campaigned on promises of restoring economic stability, has made revitalising the nation’s economy a top priority.
Central to the proposed Trincomalee energy hub is the redevelopment of a World War II-era storage tank farm, partially owned by Lanka IOC, a subsidiary of Indian Oil Corporation. According to Energy Ministry Secretary Udayanga Hemapala, representatives from Ceylon Petroleum Corporation, Indian Oil, and AD Ports Group will soon meet in Sri Lanka to devise a detailed business plan. A joint project monitoring committee has already been formed to supervise the development and finalisation of comprehensive proposals.
In parallel, President Dissanayake engaged in high-level discussions this week with UAE Deputy Prime Minister and Foreign Affairs Minister Sheikh Abdullah Bin Zayed Al Nahyan in Colombo. Their talks emphasised the significance of strengthening international energy partnerships to secure Sri Lanka’s long-term energy needs.