India frontrunner for power project contracts in Sri Lanka

New Delhi, August 6

India rather than China is the frontrunner for contracts to execute hybrid power projects in three northern islands of Sri Lanka. Sri Lanka has decided to use a $12 million grant from India, which means that Indian companies will be assured of the contracts, Sri Lanka media have reported.

The contract had first been awarded to a Chinese company to install hybrid renewable energy systems off the coast of Jaffna. Since the locations were close to India, South Block had protested Chinese involvement which led to the contract being scrapped.

Though the cancellation of the contract to the Chinese companies was stated to be Colombo’s sovereign decision, the Chinese Embassy in Sri Lanka spoke of a “security concern from a third party”, hinting at Indian pressure.