India is stepping up to help its neighbor, Sri Lanka, by supplying liquefied natural gas (LNG), connecting electricity grids, and building a new petroleum pipeline. These major plans were announced by Indian Prime Minister Narendra Modi during a joint press event with Sri Lankan President Anura Kumara Dissanayake, who is visiting India for the first time since taking office.
The announcements come at a critical time for Sri Lanka. After years of economic struggles, including a debt default in 2022, the island nation is working hard to rebuild its economy. India has emerged as a key partner, providing vital support to help Sri Lanka recover.
What’s in the Deal?
- LNG Supply for Power Generation
India’s state-owned company, Petronet LNG, has already signed a deal to supply natural gas to Sri Lanka for the next five years. The gas will be delivered through a terminal in Kochi, a city in southern India. This gas will help power Sri Lanka’s electricity plants, ensuring a stable and affordable energy supply. - A Multi-Product Energy Pipeline
One of the most ambitious parts of the plan is a pipeline that will connect India and Sri Lanka. This pipeline will deliver petroleum products to the island nation, helping reduce costs and ensuring energy security. - Connecting Electricity Grids
India and Sri Lanka will also work on linking their power grids. This move will make it easier to share electricity between the two countries, boosting energy reliability for both.
India’s Continued Support
India has been a lifeline for Sri Lanka, providing $5 billion in credit lines to help the country pay for essential imports and projects. President Dissanayake expressed his deep gratitude for India’s ongoing support, especially during Sri Lanka’s difficult debt restructuring process. He welcomed India’s decision to extend help for projects originally funded by credit lines, which will also ease Sri Lanka’s financial burden.
Earlier this year, India, along with France, Japan, and China, agreed to help Sri Lanka restructure its external debt, marking a major step in its economic recovery. Currently, Sri Lanka is under an IMF bailout program, which provides financial assistance and reforms to stabilize the country.
Strengthening Regional Security
In addition to economic initiatives, the two leaders emphasized the importance of working together on regional security. Prime Minister Modi and President Dissanayake agreed that the safety of their countries is interconnected. Dissanayake assured India that Sri Lankan territory would not be used in ways that threaten India’s security or regional stability.
Resolving the Fishermen Dispute
Another key issue discussed was the ongoing dispute over fishing rights in Palk Bay, near Kachchatheevu Island. Indian and Sri Lankan fishermen have often clashed over this region. Both leaders agreed to take a “humanitarian approach” to find a solution that respects the livelihoods of fishermen on both sides.
What It Means for the Future
These projects are more than just economic agreements — they symbolize growing trust and cooperation between the two nations. By boosting energy supplies, connecting infrastructure, and focusing on regional security, India and Sri Lanka are paving the way for a stronger, more stable partnership.
For Sri Lanka, this support couldn’t come at a better time. With reliable energy and economic aid, the country can look forward to rebuilding its economy and ensuring a better future for its people. For India, these efforts highlight its role as a regional leader and a dependable partner in South Asia.
As Prime Minister Modi put it, the focus is on “investment-led growth” and stronger connections — physical, digital, and energy-based. Together, India and Sri Lanka are working to power their economies and create a brighter future.
