Recently Indian Government has extended a $100 million Line of Credit (LoC) to Sri Lanka to finance projects in solar energy sector.
- The MoU was signed between Sri Lankan govt and Exim Bank (Export-Import Bank of India).
- This Line of Credit will also ensure that Sri Lanka’s 70% power requirements are fulfilled by renewable energy sources by 2030.
- Line of Credit will also finance solar energy projects in Sri Lanka, announced during Founding Conference of International Solar Alliance in the year 2018. It includes project like rooftop solar photo-voltaic systems for households and government buildings.
India-Sri Lanka Bilateral Relation
India has become the 1st country to sign deal with Sri Lanka on vision of President of Sri Lanka to fulfill 70% of its national power requirements using renewable energy sources by 2030.
Bilateral trade between the countries amounted to $ 4.59 billion in the year 2019. In addition to being Sri Lanka’s largest trade partner, India is also one of the largest contributors to FDI in Sri Lanka. Sri Lankan exports to India have increased substantially during past 18 years since 2000 when ISLFTA (India-Sri Lanka Agreement) came into force. Interestingly, over 80 per cent of Indian exports to Sri Lanka are outside the list of products covered by the FTA, thereby indicating their overall competitiveness in the Sri Lankan market.
Sri Lanka at International Solar Alliance
Around 89 countries, including Sri Lanka, signed the Framework Agreement of International Solar Alliance, jointly launched by PM Narendra Modi and former French president Francois Hollande. International Solar Alliance seeks to bring together the countries in promoting large-scale deployment of solar energy and to overcome challenges involved with technology, finance and capacity.
India’s Solar Power Generation
The Solar power generation in India has increased to 34.6 Giga Watt in 2021 from 2.6 Giga Watt in March 2014. India has launched National Solar Mission with the aim of increase it further to 100 Giga Watt.
India extends $100 mn LoC to Sri Lanka India extends $100 mn LoC to Sri Lanka