India and the UAE are joining forces to develop a major energy hub in Sri Lanka, aiming to counterbalance China's growing regional influence. The proposed hub will be located in Trincomalee, a strategically important port on Sri Lanka’s eastern coast. The initiative marks a new dimension in Delhi-Abu Dhabi strategic collaboration, extending into regional energy security and infrastructure development.

The project will involve upgrading oil storage, refining capacity, and potentially including renewable energy components. It’s designed to enhance energy access, trade logistics, and economic integration in the Bay of Bengal region, reinforcing India’s presence in the Indo-Pacific.

This trilateral cooperation comes as part of India’s broader push to de-risk Sri Lanka from excessive dependence on Chinese funding under the Belt and Road Initiative. By engaging like-minded partners such as the UAE, India seeks to promote transparent, sustainable development models in its neighborhood.

Officials see this partnership as part of a long-term plan to build resilient supply chains, expand regional connectivity, and establish strategic energy assets. It also signals India’s growing geo-economic assertiveness, leveraging energy diplomacy to shape outcomes in the subcontinent.