India to Install Connecting Pipeline, Supply LNG to Sri Lanka, PM Modi says

 

(Reuters) – India plans to supply liquefied natural gas (LNG) to Sri Lanka's power plants and will work on connecting the power grids of the two countries as well as lay a petroleum pipeline between the neighbors, Indian Prime Minister Narendra Modi said on Monday.

Modi was speaking at a joint press briefing with Sri Lankan President Anura Kumara Dissanayake in New Delhi.

Dissanayake is on his first official visit to Sri Lanka's powerful neighbor after winning the presidency in September and securing a landslide parliamentary election victory last month.

Indian state-run firm Petronet LNGPLNG.NS has signed a deal to supply liquefied natural gas to Sri Lankan engineering firm LTL Holdings' power plants in Colombo for five years through its terminal in the southern Indian city of Kochi.

Both sides also discussed a plan to connect power grids and lay a multi-product petroleum pipeline between the two countries, a joint statement from the Indian External Affairs Ministry said.

 

India extended more than $4 billion in aid to Sri Lanka when the island nation's economy plunged into a severe financial crisis in 2022 and entered into a preliminary debt restructuring agreement, along with other bilateral creditors Japan and China, in July.

The two countries will now finalize discussions on the bilateral memorandum of understanding needed to complete the debt restructuring process, the joint statement added.

 

(Reporting by Shanima A in Mumbai and Shivam Patel in New Delhi; Editing by YP Rajesh)

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