Sri Lanka prefers India for Jaffna power projects
POWER & RENEWABLE ENERGY

Sri Lanka prefers India for Jaffna power projects

Sri Lanka announced its preference for India over China in the allocation of tenders for power projects near Jaffna. This decision came shortly after President Ranil Wickremesinghe's trip to New Delhi.

The Ceylon Electricity Board (CEB) recently initiated the process of inviting tenders for hybrid power projects in three northern islands of Sri Lanka. These projects would be funded by a $12 million grant from India.

In January 2021, a contract was awarded to the Chinese company Sinosar-Etechwin by Sri Lanka to establish a hybrid renewable energy system in Nainativu, Delft or Neduntheevu, and Analaitivu islands off the coast of Jaffna. However, this contract was later cancelled. The recent tender for projects funded by Indian grants was only released recently.

New Delhi had communicated its concerns to Colombo regarding Chinese initiatives in close proximity to southern India. Various Chinese activities in Sri Lanka, which had implications for India's strategic interests, had been the subject of regular discussions between Colombo and New Delhi. This included matters such as the visit of a spy ship from China the previous year.

Sri Lanka's decision to exclude China from the project resulted in tensions between the two countries. During 2021-22, the Chinese embassy in Colombo expressed its reservations to the government of Gotabaya Rajapaksa at that time. The decision to revoke the tender awarded to the Chinese company was taken by the then-power minister, Dullas Alahapperuma. The Chinese embassy also posted a tweet indicating that the suspension of the project was due to security concerns raised by a third party.

India's involvement in Sri Lanka's energy sector revolves around the objective of establishing interconnectivity between the two national power grids. The Adani Group obtained approval to initiate two wind power plants in Mannar and Pooneryn, aimed at generating around 350 MW of electricity.

During President Wickremesinghe's visit to India in July, both countries agreed to establish a high-capacity power grid interconnection. This interconnection would facilitate bidirectional electricity trade between Sri Lanka and neighboring countries like Bangladesh, Bhutan, India, and Nepal (BBIN countries). Such a grid connection holds the potential not only to reduce the cost of electricity in Sri Lanka but also to create a dependable source of foreign exchange for the country.

Also read: 
Oil India upgrades to Maharatna, ONGC Videsh to Navratna 
Essar Oil & Gas to Strengthen Ranigunj CBM Position  


Sri Lanka announced its preference for India over China in the allocation of tenders for power projects near Jaffna. This decision came shortly after President Ranil Wickremesinghe's trip to New Delhi. The Ceylon Electricity Board (CEB) recently initiated the process of inviting tenders for hybrid power projects in three northern islands of Sri Lanka. These projects would be funded by a $12 million grant from India. In January 2021, a contract was awarded to the Chinese company Sinosar-Etechwin by Sri Lanka to establish a hybrid renewable energy system in Nainativu, Delft or Neduntheevu, and Analaitivu islands off the coast of Jaffna. However, this contract was later cancelled. The recent tender for projects funded by Indian grants was only released recently. New Delhi had communicated its concerns to Colombo regarding Chinese initiatives in close proximity to southern India. Various Chinese activities in Sri Lanka, which had implications for India's strategic interests, had been the subject of regular discussions between Colombo and New Delhi. This included matters such as the visit of a spy ship from China the previous year. Sri Lanka's decision to exclude China from the project resulted in tensions between the two countries. During 2021-22, the Chinese embassy in Colombo expressed its reservations to the government of Gotabaya Rajapaksa at that time. The decision to revoke the tender awarded to the Chinese company was taken by the then-power minister, Dullas Alahapperuma. The Chinese embassy also posted a tweet indicating that the suspension of the project was due to security concerns raised by a third party. India's involvement in Sri Lanka's energy sector revolves around the objective of establishing interconnectivity between the two national power grids. The Adani Group obtained approval to initiate two wind power plants in Mannar and Pooneryn, aimed at generating around 350 MW of electricity. During President Wickremesinghe's visit to India in July, both countries agreed to establish a high-capacity power grid interconnection. This interconnection would facilitate bidirectional electricity trade between Sri Lanka and neighboring countries like Bangladesh, Bhutan, India, and Nepal (BBIN countries). Such a grid connection holds the potential not only to reduce the cost of electricity in Sri Lanka but also to create a dependable source of foreign exchange for the country. Also read:  Oil India upgrades to Maharatna, ONGC Videsh to Navratna Essar Oil & Gas to Strengthen Ranigunj CBM Position  

Next Story
Infrastructure Urban

India To Invest $37 Billion To Boost Petrochemical Capacity

India is set to become a major global player in the petrochemicals industry, driven by a planned capital expenditure of $37 billion (Rs 3.1 trillion) aimed at reducing import dependency and enhancing self-sufficiency, according to S&P Global Ratings.In its latest report titled “First China, Now India: Self-Sufficiency Goals Will Add To Petrochemicals Supply”, S&P said India’s large-scale capacity expansion—mirroring China’s earlier push—will likely intensify oversupply pressures in Asia’s petrochemical markets.Currently the world’s third-largest petrochemical consumer a..

Next Story
Infrastructure Transport

Indian Railways Expands Global Exports Of Rail Equipment

Indian Railways has announced that it is rapidly emerging as a global exporter of railway equipment, including bogies, coaches, locomotives, and propulsion systems, under the government’s ‘Make in India, Make for the World’ initiative.According to an official statement, India’s railway products are now reaching over 16 international markets, reflecting the country’s growing capacity to design, develop, and deliver world-class rail solutions.Metro coaches have been exported to Australia and Canada; bogies to the United Kingdom, Saudi Arabia, France, and Australia; propulsion systems t..

Next Story
Infrastructure Transport

RailTel Awards Rs 163 Million Contract To RTNS Technology

RailTel Corporation of India Limited (RailTel), a Mini Ratna Public Sector Undertaking, has awarded a domestic work order worth Rs 163 million to RTNS Technology Private Limited.The contract, issued on 30 September 2025, involves the supply and installation of equipment and related services for one of RailTel’s key customers. The project underscores RailTel’s commitment to advancing technology and communication infrastructure through collaboration with domestic system integrators.RTNS Technology Private Limited, an ISO-certified system integrator, provides comprehensive solutions for perim..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?