No final decision yet
Discussions related to the electricity grid connectivity project between Sri Lanka and India are progressing steadily, though a final decision is yet to be made, Ministry of Energy Secretary Prof. Udayanga Hemapala said.
Speaking to The Sunday Morning, Prof. Hemapala explained that several rounds of discussions were still required between the two countries before a final conclusion could be reached.
“We have our team there conducting technical evaluations. Once all assessments and discussions on the main areas are complete, a final decision will be taken,” he said.
A recent virtual meeting focused on the implementation modalities of the India-Sri Lanka power grid interconnection. The Indian delegation was led by Indian Ministry of Power Secretary Shri Pankaj Agarwal, while the Sri Lankan delegation was headed by Prof. Hemapala.
During the discussions, both sides reviewed aspects related to the project’s implementation, following the confirmation of technical parameters in New Delhi on 16 June.
The transmission line is expected to allow Sri Lanka to import electricity during shortages and export renewable energy, generating foreign exchange.
It will also provide opportunities to diversify energy sources, improve grid stability, and integrate Sri Lanka into the regional power market.
Both countries have agreed to continue discussions to finalise the project’s implementation.
According to Prof. Hemapala, technical experts from both countries have completed site visits and thorough evaluations, and the Government is now awaiting the detailed findings of the joint technical committee’s feasibility report.
The project has a long history, dating back to 2002 when Nexant conducted a pre-feasibility study supported by the United States Agency for International Development (USAID). A Memorandum of Understanding (MOU) was signed in 2010 to conduct an in-depth feasibility study.
Since then, the Ceylon Electricity Board (CEB) and Power Grid Corporation of India Ltd. have analysed multiple technical, economic, and regulatory aspects, exploring options including overhead lines and undersea cables. The Asian Development Bank (ADB) funded an economic and financial feasibility assessment to support the project.
The project will be implemented in two phases. The first phase targets 500 MW capacity at an estimated cost of $ 1,225 million, using undersea cables designed to eventually support up to 1,000 MW.
The second phase will add an additional 500 MW, depending on future demand for power exchange between the two countries, according to the Long-Term Generation Expansion Plan (LTGEP) 2025-2044.