Sri Lanka awards energy deal to India after rejecting China

Sri Lanka yesterday awarded the construction of three solar and wind hybrid power generation facilities to an Indian company after scrapping a tender won by a Chinese firm.

New Delhi has long been concerned about growing Chinese influence in the island nation, which sits near key global shipping lanes and which India considers to be within its sphere of influence.

The project, initially financed by an Asian Development Bank (ADB) loan, was temporarily shelved two years ago after India raised concerns over China's involvement.

Sri Lanka's energy ministry said yesterday that the project had been revived and was now fully funded by a USD11 million Indian government grant.