Union Power Minister Manohar Lal and Sri Lankan Ports, Civil Aviation and Energy Minister Anura Karunathilake met in New Delhi on 7 August 2025 to advance bilateral energy cooperation, reviewing the proposed India-Sri Lanka HVDC interconnection and the Sampur Solar Power Project. The talks signal a concrete push to translate India's 'Neighbourhood First' policy into grid-level integration with its island neighbour.

Key Developments from the Meeting

Both delegations reviewed progress on cross-border electricity trade, renewable energy expansion, transmission infrastructure, and capacity-building programmes. The Indian side also presented its experience with the Tariff-Based Competitive Bidding (TBCB) framework — a Public-Private Partnership (PPP) model for transmission development — as a potential template for Sri Lanka's own infrastructure planning, according to an official statement issued after the meeting.

The meeting was attended by Pankaj Agarwal, Secretary, Ministry of Power, and senior Indian government officials. The Sri Lankan delegation included High Commissioner to India Mahishini Colonne alongside other senior officials.

What Both Sides Committed To

Minister Lal reiterated India's commitment to the long-standing energy partnership, while Minister Karunathilake appreciated India's continued support and conveyed Sri Lanka's intent to further expand bilateral energy cooperation. Both sides reaffirmed their commitment to sustainable development and regional energy security under existing bilateral mechanisms.

Broader Bilateral Context

The energy dialogue is set against a robust bilateral relationship anchored by India's $4 billion financial assistance during Sri Lanka's 2022 economic crisis — the single largest external support package Colombo received during that period. Cooperation has since expanded into defence, energy, and digital infrastructure.

On the trade front, merchandise trade between the two countries reached $7.18 billion in FY 2025-26, with India's exports at $5.52 billion and Sri Lanka's exports at $1.66 billion. Notably, negotiations for the Economic and Technology Cooperation Agreement (ETCA) — covering both goods and services — resumed in October 2023 after a five-year gap, with the latest round of talks held in July 2024.

India's Investment Footprint in Sri Lanka

India is among Sri Lanka's largest sources of Foreign Direct Investment (FDI), with cumulative investment of $2.94 billion through 2025. Key sectors include energy, hospitality, real estate, manufacturing, telecommunications, and banking and financial services — making the power sector partnership part of a much wider economic integration story.

With the HVDC interconnection and Sampur Solar still at the review stage, the pace of implementation will be the next critical test of whether this partnership moves from commitment to kilowatts.