India, Sri Lanka sign energy pact.

Following Wednesday's overarching Memorandum of Understanding (MoU) signed between India and Sri Lanka, both sides will collaborate in a host of energy and infrastructure projects across the island, The Hindu learns.

The Ministry of External Affairs in New Delhi says the MoU provides a road map that will require further discussions.

“Our vision to promote connectivity and development takes Sabka Saath Sabka Vikas to our external environment, and naturally to neighbourhood first,” said the MEA spokesperson on Thursday.

The MoU - signed in New Delhi during Prime Minister Ranil Wickremesinghe’s visit - includes the setting up of a Liquefied Natural Gas (LNG) plant in suburban Colombo and a solar power plant in Sampur in Trincomalee; Indian assistance to enhanced use of natural gas in Sri Lanka; joint investment in the petroleum sector and partnerships in highways and transportation, the spotlight remains on the proposed joint venture to develop a World War-era oil storage facility in Trincomalee, the strategically located port town on the island’s east coast.

As per the MoU, the countries will also jointly set up Industrial Zones and Special Economic Zones in Sri Lanka. Colombo has been keen on attracting Indian investment into the island.

THE HINDU