Context
India has launched a Hybrid Renewable Energy Systems Project in Sri Lanka as part of a strategic initiative to strengthen energy infrastructure off Jaffna peninsula.
Hybrid Renewable Energy Systems Project
- The Hybrid Renewable Energy Systems Project was signed by India and Sri Lanka on March 1, 2024.
- It was signed by
- the Sri Lanka Sustainable Energy Authority,
- the Government of Sri Lanka, and
- the Indian company U-Solar Clean Energy Solutions
- It is being executed through USD 11-million grant assistance from the Government of India.
- The contract aims at building Hybrid Renewable Energy Systems in three islands off Jaffna peninsula,
- Delft or Neduntheevu
- Nainativu
- Analaitivu islands
- Aim: - The project is aimed at addressing energy needs of the people of the three islands.
- The hybrid project combines various forms of energy including both solar and wind.
- Capacity: - The project will comprise
- 530 kw of wind power,
- 1,700 kw of solar power,
- 2,400 kWh of battery power and
- 2,500 kw diesel power system
Significance of the Initiative
- The Hybrid Renewable Energy Systems programme is the third India-backed energy project planned for Sri Lanka's north and east.
- This initiative demonstrates India's sustained commitment to sustainable development in Sri Lanka's northern and eastern areas.
- This initiative represents a triumph for Indo-Sri Lankan collaboration while also emphasizing the difficulties of regional relations.

India-Sri Lanka Relations
Political Relations
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- Sri Lanka is a member of regional groups such as BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) and South Asian Association for Regional Cooperation (SAARC).
- India is also a key player of these groups.
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Trade Relations
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- India has traditionally been one of Sri Lanka's greatest commercial partners, and Sri Lanka is still one of India's largest SAARC trading partners.
- In 2020, India was Sri Lanka's second largest trading partner, with bilateral merchandise trade totaling over USD $3.6 billion.
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Cultural Relations
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- The Cultural Cooperation Agreement signed by the two governments on November 29, 1977.
- It serves as the foundation for periodic cultural exchange programmes between the two nations.
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Defence Relations
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- Sri Lanka and New Delhi have a long history of security cooperation.
- In recent years, both sides have progressively boosted their military-to-military cooperation.
- India and Sri Lanka perform combined military (Mitra Shakti) and naval exercises (SLINEX).
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Strategic Interest
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- The relationship between these two important Indian Ocean nations is seen in the larger regional and Indian Ocean framework.
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Major Agreements Signed Between India and Sri Lanka
- India has helped Sri Lanka's Debt Restructuring by partnering with the International Monetary Fund (IMF) and creditors.
- Both India and Sri Lanka have agreed to build a Multi-Product Petroleum Pipeline from southern India to Sri Lanka.
- The Joint Declaration of Intent (JDI) for Animal Husbandry and Dairying.
- Memorandum of Cooperation for Economic Development Projects in Sri Lanka's Trincomalee District.
- NPCI International Payments Limited (NPIL) and Lanka Pay have signed a network-to-network agreement to accept Unified Payments Interface (UPI) applications in Sri Lanka.
- The proposed Economic and Technology Cooperation Agreement (ETCA) between India and Sri Lanka will enhance trade in services, investments, and technology cooperation.
Issues and Conflicts bet India-Sri Lanka Relations
- Fishermen issue: Sri Lanka has long been concerned about illicit fishing by Indian fishermen in its territorial waters across the Palk Strait. India detains Sri Lankan fishermen for unlawful fishing.
- Katchatheevu Island: Sri Lanka recognises its sovereignty over the island under the 1974 agreement. However, Tamil Nadu contended that Katchatheevu is under Indian territory.
- Chinese influence in Sri Lanka: China has used geoeconomics to advance its geopolitical goals in Sri Lanka. This has led to strategic land grabs, which might quickly escalate into a civil-military conflict.
Conclusion
The Hybrid Renewable Energy Systems Project initiative is a watershed event in Indo-Sri Lankan relations, demonstrating India's commitment to sustainable energy development in the area. India's proactive approach, granting grant assistance rather than a loan, underlines its geopolitical interests in the region.
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