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Indian companies eye wind energy projects in Sri Lanka

25 Sep 2022

  • Renewable energy an area of focus in India-SL ties: Diplomatic sources
  • Investors from several countries interested in renewable energy plants: BOI
Indian companies are interested in investing in Sri Lankan wind energy projects in the country’s northwestern region, Deputy High Commissioner of India to Sri Lanka Vinod K. Jacob reveals.  The Deputy High Commissioner made this revelation at the strategic forum titled ‘Sri Lanka’s Turnaround Strategies and the Role of the International Community’ organised by the Postgraduate Institute of Management Alumni (PIMA) on 20 September 2022. Although he noted that there were several Indian companies that were interested in investing in wind energy projects in the northwest of Sri Lanka, he did not provide any other specifics. “It is well recognised that the northwestern region of Sri Lanka has good prospects for wind energy projects. Furthermore, renewable energy is an area of specific focus in Indian and Sri Lankan foreign relations,” diplomatic sources told The Sunday Morning Business. Speaking to The Sunday Morning Business, Board of Investment (BOI) of Sri Lanka Director General Renuka M. Weerakone stated that investors from several countries including India had expressed interest in Sri Lanka’s renewable energy projects. “Renewable energy has always been an area of interest for foreign investors. Multiple countries including India have expressed an interest in investing in the renewable energy projects of Sri Lanka,” Weerakone shared. However, she refused to provide any specifics regarding the particular projects and the potential investors who had shown interest.    Recently, India has shown considerable interest in investing in Sri Lanka’s renewable energy projects. However, most such projects have been mired in political controversy and geopolitical tensions. In January 2021, Sri Lanka awarded renewable energy projects in Nainativu, Delft or Neduntheevu, and Analaitivu to the Chinese company Sinosoar-Etechwin, following an Asian Development Bank-backed competitive bid.  This resulted in India exerting significant pressure on Sri Lanka to terminate the agreement with the Chinese company. As an alternative, the Indian Government offered to execute the same project with a grant rather than a loan.  Consequently, Sri Lanka suspended the project with the Chinese company, resulting in a stern warning by China regarding the negative message being sent to foreign investors. Sri Lanka signed a Memorandum of Understanding (MOU) with India in March 2022 to set up hybrid power projects in the three islands. Similarly, the MOU signed with India’s Adani Group allocating two large-scale renewable energy generation projects in Mannar and Pooneryn in the Northern Province also involved significant controversy due to allegations of corruption by local politicians.  – By Shenal Fernando     


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