Modi to launch new solar power plant project in Sri Lanka

Sri Lankan President Anura Kumara Dissanayake and Indian Prime Minister Narendra Modi will lay the virtual foundation stone for the project in Sampur on April 5 during Mr. Modi's visit to Sri Lanka, the Indian Ministry of External Affairs said.

"This will be, in every respect, an important step in our bilateral partnership," the ministry's secretary, Vikram Misri, told reporters.

This project, led by the Indian public company NTPC, with a capacity of 120 megawatts, has been in the making for several years.

It has emerged from the pipeline as India attempts to regain the economic initiative in an area where its great regional rival, China, has been on the rise for several years.

"Mr. Modi's visit comes at an opportune time for the two countries to explore new avenues of partnership and cooperation," the top Indian diplomat said on Friday.

In February, the Indian group Adani abandoned plans to build a wind farm worth more than €420 million on the northwest coast of the island, following Sri Lanka's decision to renegotiate the contract.

President Dissanayake's government considered the purchase price of Adani's electricity too high and had raised suspicions of corruption.

Billionaire Gautam Adani, a close associate of Narendra Modi, had pledged to invest $1 billion in Sri Lankan renewable energy projects.

He was indicted last year by the US federal justice system in a corruption case linked to the supply of solar electricity in India.

Two years after the worst economic crisis in its history, Sri Lanka returned to growth in 2024 (+5%), a performance described as "remarkable" by the International Monetary Fund (IMF).