In a significant victory for New Delhi, the Sri Lankan government has opted to revoke a crucial contract for the supply of liquefied natural gas (LNG) and construction of a pipeline network that had been granted to a China-Pakistan partnership. The decision was made after the partnership was chosen via an international bidding procedure for the purchase of LNG, according to Sri Lanka’s The Sunday Times. The administration is now debating a proposal from an Indian firm.
In order to reduce the cost of electricity generation, the China-Pakistan Engro Consortium was picked in August of last year. However, the creation of a Floating Storage and Re-gasification Unit (FSRU) and a related pipeline network are covered under the existing LNG procurement process, which was halted on Monday by Power and Energy Minister Kanchana Wijesekera.
For influence in the island country, India and China have engaged in fierce struggle. While India has continued to be a reliable economic and security ally, China has made large investments in infrastructure projects in Sri Lanka. The competition between the two has intensified recently as Beijing tries to increase its influence in the Indian Ocean area and New Delhi fights back.
Less than a month has passed since Sri Lankan President Ranil Wickremesinghe’s two-day visit to India when the Chinese offer was revoked, according to the latest report. Wickremesinghe and Prime Minister Narendra Modi had delegation-level discussions on a variety of topics pertaining to the long-standing ties between the two neighbors during Wickremesinghe’s visit in July.
The visit of the Sri Lankan leader was deemed “very important” by the spokesperson for the minister of external affairs, Arindam Bagchi.
According to the MEA spokeswoman, India and Sri Lanka discussed ways to expand their economic ties, particularly how India’s prosperity may help the island country. He said that new initiatives, development cooperation, and security challenges have been recognized as areas of participation by both parties.
