The UAE, India, and Sri Lanka signed an agreement to explore the development of an energy hub in Sri Lanka’s strategic port city of Trincomalee, Reuters reported on Saturday. The agreement — signed during Indian Prime Minister Narendra Modi’s visit to Colombo — marks the first major trilateral energy partnership in the region. The project could include a multi-product pipeline and the potential redeployment of WWII-era oil storage tanks managed by Indian Oil Corp.

What's next? It has not been revealed whether production will be exported or earmarked for domestic use. The UAE’s role in financing and feasibility studies is also yet to be determined through talks between businesses from the three nations.

In context: The agreement intensifies the regional competition between China and India for influence in Sri Lanka, which saw India hand Sri Lanka USD 4 bn in financial aid following its 2022 crisis, and Beijing’s state-owned energy company Sinopec agree to build a USD 3.2 bn oil refinery in Hambantota, a port city in southern Sri Lanka.

ICYMI- The UAE signed an investment agreement with Sri Lanka last month to strengthen economic ties between the two countries, while recent Emirati-Indian cooperation includes logistics giant DP World launching a new rail service between depots and ports in India.

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