According to Foreign Secretary Vikram Misri, Vice President CP Radhakrishnan and President Anura Kumara Dissanayake of Sri Lanka talked about the proposed oil pipeline connection between India and the island nation on Sunday. "The project pertaining to the energy hub in Trincomalee and the proposal to connect India and Sri Lanka through an oil pipeline are two noteworthy initiatives that are currently underway from the Indian side and some proposals that have already been discussed between the two countries." Indeed, the importance of such energy connectivity was highlighted, particularly in light of the current circumstances.after Radhakrishnan's first day of the tour, Misri told reporters in Colombo, "when the entire world and this region especially is facing the fallout of an energy crisis generated by the situation in West Asia."
By avoiding China, which has a major energy footprint in Sri Lanka and could expand with a planned refinery at Hambantota, the proposed project represents India's attempt to alter energy dependence in the Indian Ocean.
China's approach to energy: From resources to market dominance
There have been two main stages to China's involvement in Sri Lanka's energy sector. The first phase focused on infrastructure. The foundation of Sri Lanka's electricity production is still the Lakvijaya coal power plant, which was constructed with Chinese contractors and funding. It grants China a permanent place in the nation's power structure.The second, more strategic phase is currently taking place. China is becoming more involved in downstream energy. Despite its delay, Sinopec's proposed Hambantota refinery aims to establish Sri Lanka as a regional center for refining. Sinopec's entry into Sri Lanka's petroleum import and retail industry, which gives China the ability to affect daily energy use, is even more important.
Sri Lanka anticipates that Sinopec will increase downstream activities and start construction on the refinery shortly. China would have a foothold along the value chain with this combination of retail and refining. China is essentially trying to shift from developing infrastructure to controlling the flow of energy within the nation.Because it lessens dependency on any one project, this tiered approach is important. Control over fuel delivery guarantees ongoing influence even if the refinery is delayed.
India's current power: Crisis leverage and supply chains
Although less obvious, India's energy influence is more ingrained in day-to-day activities in Sri Lanka. India already has operations in petroleum import, storage, and retail through Indian Oil Corporation and its subsidiary Lanka IOC. When India provided substantial amounts of fuel and financial support during Sri Lanka's economic crisis, this network proved crucial.

India's footprint is based on supply networks, in contrast to China's infrastructure-heavy strategy. It is not reliant on one big project. Rather, it depends on the capacity to distribute gasoline in a timely and dependable manner. This distinction is important. While supply chains foster immediate dependence, infrastructure fosters long-term influence. India has frequently used this edge, particularly during disruptions brought on by shocks to the world's energy supply. This approach is extended by the suggested pipeline.
India's attempt to expand its strategy is exemplified by the Trincomalee project. Redeveloping the oil tank farm, a storage facility from World War II, is not the only goal. Additionally, it involves creating a complete energy hub that incorporates regional distribution, refining potential, and storage.The United Arab Emirates' participation is what sets this endeavour apart. A multi-product pipeline, bunkering facilities, and potentially a refinery are among the ideas for the collaborative development of the Trincomalee hub by India and the United Arab Emirates.
The involvement of the UAE is not coincidental. It provides funding, access to international energy markets, and technological know-how. Additionally, it changes the enterprise from a bilateral endeavour to a more comprehensive geopolitical alignment. Trincomalee's significance is increased by its location. It has one of the best natural harbours in the area and is situated near important shipping lanes on Sri Lanka's eastern coast. Because of this, it is perfect for an energy hub that can cater to both local and regional markets.

The pipeline: The strategic link that is lacking
The projected India-Sri Lanka oil pipeline is the most important part of India's energy strategy. This project, which was discussed since 2023 and formalised through a trilateral agreement involving India, Sri Lanka, and the United Arab Emirates in 2025, was reinforced during the visit of Vice President C. P. Radhakrishnan. The pipeline and oil hub are at the center of the most recent bilateral discussions, and both parties concur that there is no more time to delay their advancement.
The project envisions multi-product pipeline connecting India to Sri Lanka, feeding into the Trincomalee storage complex.This modifies the strategic equation in a number of ways. It lessens Sri Lanka's reliance on imports of seaborne oil. Since the nation now imports all of its oil needs, it is susceptible to interruptions from around the world.

Additionally, a direct and continuous supply link from India's refining infrastructure would be established. This would turn India into a long-term energy partner rather than only a last-resort provider. Pipeline, storage, and retail integration enables India to construct an end-to-end energy network within Sri Lanka.
Countering China
 Sri Lanka's energy sector, the rivalry between China and India is currently characterised by two opposing models. China's strategy is focused on assets. It concentrates on developing massive infrastructure, such refineries and power plants, before branching out into downstream sectors. The objective is to establish long-term investments in the nation's energy infrastructure.

The involvement of the UAE adds another layer to this competition. It brings in a third major energy player aligned with India, strengthening the project’s financial and strategic viability. This trilateral framework contrasts with China’s largely bilateral engagement delicate. Energy infrastructure creates long-term dependencies. Whether Sri Lanka leans more toward China’s infrastructure model or India’s supply chain model will shape its strategic orientation.

hub could fundamentally alter Sri Lanka’s energy dependence, tying it more closely to India. If delayed, China’s expanding downstream presence could fill the gap.
The stakes extend beyond Sri Lanka. What is being shaped here is a model of influence in the Indian Ocean, where energy flows too determine strategic power.The stakes extend beyond Sri Lanka. What is being shaped here is a model of influence in the Indian Ocean, where energy flows too determine strategic power.