Govt. says discussion ongoing on New Delhi’s concern about Chinese coastal power projects

By Asiri Fernando

Sri Lanka and India are in discussions regarding New Delhi’s concerns about a Chinese company being cleared for renewable energy projects on islands in the Palk Bay. 

“These are [Cabinet] approved projects. Some complaints were received, and it is being looked into. There will be an exchange of views and then they will be discussed in detail with the relevant authorities,” Cabinet Spokesperson Keheliya Rambukwella told Daily FT yesterday, adding that the matter was in the discussion stage. 

Cabinet had last month approved a proposal, funded by the Asian Development Bank (ADB) where M/S Sinosoar-Etechwin, a Chinese joint venture company, was selected through a competitive bidding process to install ‘hybrid renewable energy systems’ in Nainativu, Delft and Analaitivu Islands, located in the Palk Bay. India had last week expressed concern regarding the projects, pointing out that the ventures are in close proximity to the Tamil Nadu coast. 

The Indian concerns come in the wake of Sri Lanka opting to go it alone in developing the East Container Terminal (ECT) at Colombo Port, disregarding Indian and Japanese calls to abide by a 2018 tripartite Memorandum of Cooperation to jointly develop the terminal. 

The Indian Government also raised concerns about a $ 300 million housing project that China bid for in 2018.