Sri Lanka and India have entered a crucial phase in discussions to connect their national electricity grids — a move that could redefine the future of energy security and regional cooperation in South Asia.
Background
The two nations are in advanced talks over a High-Voltage Direct Current (HVDC) transmission line connecting Madurai in southern India to Anuradhapura in northern Sri Lanka. This undersea link, estimated to cost nearly US$ 1.2 billion, will allow for two-way electricity exchange between the countries.
The concept was first proposed over a decade ago but gained momentum only recently due to Sri Lanka’s energy crisis and the growing focus on renewable energy.
The Need for Integration
Sri Lanka relies heavily on hydropower, supplemented by thermal and solar sources. However, unpredictable weather patterns, droughts, and rising demand have strained the power supply. Integrating with India’s massive grid could enable Sri Lanka to import affordable power during shortages and export renewable energy during peak generation periods.
Officials from both nations say the link could be operational by 2028, pending final environmental and financial approvals.
Economic and Environmental Benefits
Beyond energy trading, the project symbolizes regional partnership and mutual benefit. For Sri Lanka, it offers stability and potential revenue; for India, it strengthens its regional influence and furthers its “One Sun, One World, One Grid” renewable initiative.
Environmental analysts highlight that the project can reduce Sri Lanka’s carbon emissions by over 200,000 tonnes annually by replacing diesel-based generation with imported clean energy.
Strategic Implications
This partnership extends beyond economics. Strengthening the energy corridor deepens bilateral relations and promotes regional energy diplomacy. With rising global energy instability, such partnerships ensure that small nations like Sri Lanka are not isolated from wider grids.
The project also opens the door for private investment in cross-border renewable projects — particularly wind and solar farms in the island’s North and East.
Looking Ahead
Once operational, the power link could save the government millions in foreign exchange spent on fuel imports while ensuring stable electricity for industries and households. It could also encourage foreign investors to set up manufacturing facilities in Sri Lanka, assured of consistent power.
This initiative marks a step toward a self-reliant, interconnected, and sustainable energy future for Sri Lanka.
