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Sri Lanka awards energy deal to India, rejects Chinese firm’s offer


Sri Lanka awards energy deal to India, rejects Chinese firm's offer

China and India compete for major infrastructure projects in Sri Lanka (Representation)

Sri Lanka on Friday awarded the construction of three hybrid solar and wind power generation facilities to an Indian company after rejecting a tender won by a Chinese company.

India has long been concerned about China’s growing influence in the island nation, which is located near major global shipping lanes and which India considers part of its sphere of influence.

The project, initially financed by a loan from the Asian Development Bank (ADB), was temporarily suspended two years ago after India expressed concerns over China’s involvement.

Sri Lanka’s energy ministry said on Friday that the project had been revived and was now fully funded by an $11 million Indian government grant.

He added that Bengaluru-based renewable energy company U-Solar won the construction contract.

India’s aid “underscored the importance New Delhi attaches to the bilateral energy partnership,” the Indian embassy said in a statement.

The three facilities will have a combined renewable energy capacity of 2,230 kilowatts and will be located on islets near the northern city of Jaffna, not far from India’s southern coast.

China and India are competing for major infrastructure projects in Sri Lanka, which is emerging from its worst economic crisis since its independence from Britain in 1948.

Beijing is also Sri Lanka’s largest bilateral creditor, accounting for around 10% of the island nation’s $46 billion in external debt at the time of the government’s default at the height of the crisis in 2022.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)


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