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Why connecting Sri Lanka's electricity grid to India would be grave strategic mistake

Daily FT

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May 06, 2025

IN the midst of Sri Lanka's prolonged economic crisis, the proposal to connect our national electricity grid to India through an undersea transmission line has resurfaced as a seemingly pragmatic solution. Advocates tout benefits such as cheaper electricity, enhanced regional cooperation, and improved grid stability. But behind this optimistic facade lies a serious threat to Sri Lanka's sovereignty, energy security, and long-term economic independence.

- By Dilum Alagiyawanna

Why connecting Sri Lanka's electricity grid to India would be grave strategic mistake

While maintaining harmony with our large and influential neighbour India is important, the Government of Sri Lanka has a solemn duty to protect national sovereignty, ensure energy autonomy, and uphold the integrity of our strategic infrastructure.

The permanent price trap

India, with its massive generation capacity, enjoys significantly lower electricity production costs due to its scale, resource diversity, and mature infrastructure. Whether it's coal, solar, wind, hydro, or green hydrogen, India's ability to generate power cheaply will far surpass Sri Lanka's for the foreseeable future.

If a direct grid connection is established, Sri Lanka will inevitably lean on Indian electricity not as a choice, but as an economic necessity. This will make locally generated power, including renewables, less competitive unless heavily subsidised. The result? A steady decline in investment and interest in building or maintaining domestic power plants.

Sri Lanka's own Long-Term Generation Expansion Planning Studies 2023-2042, published by the Ceylon Electricity Board (CEB), estimates that even by 2042, our national electricity peak demand will remain below 10 GW. This is a manageable target with the right local investments-particularly given that over 62% of our current power mix already comes from hydropower, a clean and renewable source we've successfully relied on for generations.

Collapse of local capacity

Faced with financial constraints and the temptation of cheap imports, the Government may find it politically convenient to abandon or defer essential infrastructure upgrades and renewable projects. Over time, power plants may be decommissioned, skilled technical staff could migrate, and our institutional capacity to manage independent generation may erode.

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