Russia, Sri Lanka Discuss Energy and Investment Projects

Russia’s Deputy Energy Minister Roman Marshavin has held videoconference discussions with Sri Lanka’s Minister of Power and Energy, Kumara Jayakody, as well as representatives of Sri Lanka’s energy companies. Sri Lanka has been hit by an economic crisis and lacks sufficient energy production.

The two sides discussed prospects for joint investment projects in the fuel and energy sector, as well as Sri Lankan energy needs, which could involve Russian companies in the construction and modernization of energy infrastructure facilities, including LNG terminals.

Marshavin said “We view Sri Lanka as a promising partner in the energy sector, and our negotiations were constructive. The Sri Lankans said they were willing to cooperate on investment projects in the energy sector.”

Sri Lanka, with a significant tourism industry, was badly hit by covid, while the 2019 terrorist attacks also saw foreign investment and tourism drop. Previous incompetent government and fraud have seen multiple large investment projects, some financed by China, come to a halt as the country defaulted on its foreign debt in 2022. That is now being restructured with the assistance of the IMF, while the Sri Lankan national government administration is being completely overhauled. While the country may be cash-poor, it is in a strategic geographical position and could develop as a hub for Russian investors looking to reach out elsewhere into South Asia.

Joint Indian-Russian operators are already managing the countries second airport at Hambantota, which is being repositioned as a tourist arrivals hub from East Asia. Sri Lanka is a member of the SAARC trade bloc, and has also applied to join the BRICS.