A memorandum of understanding on linking India and Sri Lanka’s electricity grids could soon be signed to be followed by a feasibility study, according to Mr. Milinda Moragoda, Sri Lankan High Commissioner to India. India and Sri Lanka revived talks on linking their electricity grids in the first quarter of 2022.

Sri Lanka aims to establish the transmission line in two to three years as part of the country’s economic recovery plan and tap on the prospect of exporting renewable energy to India.

Mr. Moragoda noted that the electricity trade could be a source of foreign exchange for the country.

He also shared that India and Sri Lanka will begin negotiations on enhancing their free trade agreement.

India is Sri Lanka's biggest trading partner accounting for about $5 billion each in bilateral trade in 2021.

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Sri Lanka, India to sign power grid linking pact within two months - envoy