Sri Lanka Withdraws China-Pakistan LNG Bid, Reviews Indian Proposal

In a significant victory for India, the Sri Lankan government has decided to cancel a contract awarded to a China-Pakistan consortium. This contract was for supplying Liquefied Natural Gas (LNG) and building a pipeline network. The decision to cancel the tender was made after the consortium won the bid through an international process. Instead of proceeding with this consortium, the government is now considering an offer from an Indian company.

The China-Pakistan Engro Consortium had been chosen last year to help reduce power production costs. However, the Power and Energy Minister, Kanchana Wijesekera, submitted a Cabinet paper to halt the ongoing LNG procurement process, which included the development of a Floating Storage and Re-gasification Unit (FSRU) and a pipeline network.

Both India and China have been competing for influence in Sri Lanka. China has made significant investments in infrastructure projects on the island, while India has been a trusted economic and security partner. The competition between the two countries has been escalating, with China trying to expand its influence in the Indian Ocean region and India countering those efforts.

The decision to revoke the Chinese tender comes shortly after Sri Lankan President Ranil Wickremesinghe's visit to India. During his visit, he had discussions with Prime Minister Narendra Modi on various aspects of the bilateral relationship between the two neighboring countries.

The visit was described as "very important" by the External Affairs Minister Spokesperson, Arindam Bagchi. The discussions between India and Sri Lanka included closer economic cooperation and how India's economic growth could benefit Sri Lanka. Security issues, development cooperation, and new projects were also identified as areas for engagement between the two countries.