Sri Lanka targets 70% renewable energy by 2030 in India-Sri Lanka economic pact

This joint statement outlines a vision for a closer bilateral economic partnership between India and Sri Lanka, focusing on enhancing connectivity in maritime, air, energy, trade, and people-to-people sectors to support Sri Lanka's economic recovery and regional growth.

Who it concerns: The agreement involves the governments of India and Sri Lanka, specifically affecting sectors including ports and logistics, civil aviation, renewable energy (wind, solar, hydrogen), petroleum and hydrocarbons, manufacturing, digital payments, tourism, education, and research institutes.

What was agreed

• Cooperation in developing ports and logistics infrastructure at Colombo, Trincomalee, and Kankesanthurai.
• Resumption of passenger ferry services between Nagapattinam (India) and Kankesanthurai (Sri Lanka), and work towards resuming services between Rameshwaram and Talaimannar.
• Expansion of air connectivity to include Colombo and exploration of routes between Chennai and Trincomalee/Batticaloa.
• Establishment of a high-capacity power grid interconnection for bidirectional electricity trade, including with BBIN countries.
• Expedition of the Sampur Solar power project and LNG infrastructure, and exploration of green hydrogen and green ammonia cooperation.
• Construction of a multi-product petroleum pipeline from Southern India to Sri Lanka.
• Joint exploration and production of hydrocarbons in Sri Lanka’s offshore basins.
• Operationalisation of UPI-based digital payments and designation of INR as the currency for trade settlements.
• Leveraging India’s Digital Public Infrastructure for citizen-centric services in Sri Lanka.
• Conducting a feasibility study for land connectivity between Sri Lanka and India to access Trincomalee and Colombo ports.

Also in the document

• Sri Lanka aims to generate 70% of its power requirements from renewable energy sources by 2030.
• India’s support is described as 'timely, unprecedented, and crucial' to Sri Lanka's economic recovery.
• The agreement includes facilitating Indian investments in the divestment of Sri Lankan State-owned Enterprises.
• A new framework for an Economic and Technology Cooperation Agreement is to be discussed.