Modi Strengthens India-Sri Lanka Ties with 120 MW Solar Project

India’s Prime Minister Narendra Modi is set to launch a major solar power initiative in Sri Lanka on April 5, 2025, reinforcing the growing partnership between the two nations. The 120 MW solar power plant in Sampur, located in Sri Lanka’s northeastern Trincomalee district, is more than just an energy project—it’s a strategic move in a region where India and China are vying for influence.

A Long-Awaited Renewable Energy Project

The Sampur solar farm, a joint effort between India’s National Thermal Power Corporation (NTPC) and Sri Lanka’s Ceylon Electricity Board (CEB), will finally break ground during Modi’s visit. Originally planned as a 500 MW coal plant back in 2012, the project was later reimagined as a renewable energy initiative.

Modi and Sri Lankan President Anura Kumara Dissanayake will oversee the virtual groundbreaking ceremony from Colombo, officially kick-starting construction on the long-delayed project. Sri Lanka has already signed a power purchase agreement to buy electricity from the plant at a competitive rate of 5.97 US cents per kilowatt-hour, which will benefit the country’s energy grid.

“This, in many senses, is going to be a milestone in the bilateral partnership,” said Vikram Misri, Secretary of India’s Ministry of External Affairs, highlighting the significance of the initiative beyond just energy production.

A Strategic Move Amid China’s Influence

India’s investment in Sri Lanka’s energy sector isn’t happening in isolation—it’s part of a broader push to counter China’s growing presence in the country. China has made significant infrastructure investments in Sri Lanka under its Belt and Road Initiative, and this solar project signals India’s intent to reassert its role as a key development partner.

President Dissanayake’s visit to Beijing in January 2025 underscored Sri Lanka’s ongoing balancing act between the two regional powers. With China as Sri Lanka’s largest lender, India’s latest energy investment is a strategic play in this geopolitical tug-of-war.

Supporting Sri Lanka’s Renewable Energy Goals

The solar project comes as Sri Lanka is rebounding from a severe economic crisis, with the country posting a 5% growth rate in 2024. This initiative aligns with Sri Lanka’s “Sooriyabala Sangaramaya” (Battle for Solar Energy) program, which aims to add 1000 MW of solar power to the national grid by 2025 and 1500 MW by 2030. The Sampur plant alone will contribute nearly 12% of the country’s 2025 solar target.

President Dissanayake has also announced upcoming renewable energy projects, including another solar power plant in Siyambalanduwa and a 50 MW wind farm in Mannar, further cementing the country’s commitment to clean energy.

Strengthening Bilateral Cooperation

The solar farm is just one piece of a larger cooperation package between India and Sri Lanka. According to Misri, during Modi’s visit, both leaders will “dedicate several projects that are being built with Indian assistance in Sri Lanka and will also witness the exchange of several memoranda of understanding pertaining to energy connectivity, digitization, defense, health, and multisectoral grant assistance.”

India’s broader engagement suggests that this partnership isn’t just about power generation—it’s about deepening economic and strategic ties across multiple sectors. Energy grid connectivity between the two nations is also on the table, hinting at future collaborations in regional energy security.

A Shift from Previous Energy Ventures

The Sampur solar project marks a notable shift in India’s approach to energy investment in Sri Lanka. Just two months ago, the Sri Lankan government canceled a €420 million wind farm project backed by Indian conglomerate Adani due to concerns over pricing and transparency.

Unlike the Adani project, this state-led initiative through NTPC aims to avoid similar pitfalls, with clear transparency around pricing and terms. The structured, government-backed nature of the project suggests that both nations have learned from past challenges and are moving toward more stable, long-term partnerships.

Final Thoughts

As Sri Lanka positions Trincomalee as an energy hub, the Sampur solar farm could pave the way for broader regional energy cooperation. Modi’s visit is expected to include agreements on energy connectivity, setting the stage for a more integrated energy future in South Asia.

The April 5th groundbreaking isn’t just about a solar farm—it’s a symbol of evolving India-Sri Lanka relations. As both countries navigate energy security, climate change, and shifting geopolitical dynamics, this project represents a forward-thinking partnership in an increasingly complex region.