SRI LANKA’S government started talks with India’s Adani Group to lower the cost of power from two wind power projects the group will build in the island nation’s northern province, the cabinet spokesman said last Tuesday (28).
Sri Lanka has been reviewing the group’s local projects after US authorities in November accused billionaire founder Gautam Adani and other executives of being part of a scheme to pay bribes to secure Indian power supply contracts. Adani has denied the allegations.
“The Sri Lankan government is of the stance that we want a lower price and discussions with Adani have already started,” cabinet spokesman and health and media minister Nalinda Jayatissa said.
The government thinks it is possible to bring prices to about £0.04 per kilowatt-hour (kWh) or lower, below the earlier proposed price of £0.06, he said.
Adani did not respond immediately to a request for comment.
Last month, Adani said its power purchase deal with the Sri Lankan government was intact after a report said it had been revoked.
Adani said the Sri Lankan cabinet’s decision last month to reevaluate the tariff approved in May was a “standard review process” with a new government and that the group remains committed to investing $1 billion in Sri Lanka’s green energy sector.
Under the deal with Sri Lanka, Adani Green Energy would build two wind power stations with a total investment of $442 million (£354.1m). Cashstrapped Sri Lanka, which has suffered from power blackouts and fuel shortages, has been trying to speed up green power generation to hedge against surges in imported fuel costs.
The US allegations raised concerns among some partners and investors of the group, with at least one Indian state reviewing its power deal with Adani and TotalEnergies halting further investments in the conglomerate.
The Adani Group is also involved in building a $700 million terminal project at Sri Lanka’s largest port in Colombo.
CHANCELLOR Rachel Reeves has said the government must support the Bank of England in bringing down inflation while also focusing on growth, ahead of a budget later this year that is expected to include tax rises.
Last week, Reeves said the economy was not “broken” as she announced November 26 as the date for her annual budget.
She pledged to keep a tight hold on spending to reduce inflation and borrowing costs amid concerns over Britain’s fiscal outlook.
Inflation in Britain was the highest among the Group of Seven economies at 3.8 per cent in July. The Bank of England expects it to peak at 4 per cent this month before gradually falling back to its 2 per cent target by the second quarter of 2027.
Prime minister Keir Starmer has said Labour inherited a difficult economic situation from the Conservatives after last year’s election.
Tax increases on businesses, efforts to cut welfare spending, and ongoing arrivals of migrants on small boats have hurt the government’s standing.
Starmer reshuffled his ministerial team last week in an effort to reset his government, though Reeves remained in place. At the first meeting of the new team, Reeves said that controlling inflation was a key priority.
“The government was focused on going further to support the Bank of England in reducing inflation, controlling public spending and driving growth,” a Downing Street spokesperson said after the meeting.
British 20- and 30-year gilt yields reached their highest levels since 1998 last week, with investors watching Britain’s fiscal situation and worried Reeves’ budget could slow growth without generating much tax revenue.
Economists have also warned that some possible tax measures in the budget, such as higher fuel duties and other levies, could add to inflation in the short term.
Previous government decisions on energy policy, as well as increases in employers’ national insurance contributions and the minimum wage, have also been linked to Britain’s high inflation rate.
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Donald Trump and Narendra Modi shake hands as they attend a joint press conference at the White House on February 13, 2025.
Trump says he will speak to Modi in the coming weeks amid trade talks
Modi calls US and India "close friends and natural partners"
Trade officials from both countries may restart meetings in September
US-India trade reached $129 billion in 2024 with a $45.8 billion US deficit
US PRESIDENT Donald Trump said on Tuesday his administration is continuing negotiations to address trade barriers with India and that he would speak to prime minister Narendra Modi, indicating a possible reset after recent friction.
Trump said he looked forward to speaking to Modi in the "upcoming weeks" and expressed confidence that the two sides could reach an agreement.
"I feel certain that there will be no difficulty in coming to a successful conclusion for both of our Great Countries," he said in a post on social media.
Modi responds with optimism
On Wednesday, Modi said Washington and New Delhi "are close friends and natural partners." He added that teams from both sides were working to conclude the trade discussions soon.
"I am also looking forward to speaking with President Trump. We will work together to secure a brighter, more prosperous future for both our people," Modi said in a social media post.
India's shares rose over 0.5 per cent after the remarks from both leaders.
Trade deal uncertainty
Trump had said for months that a trade deal was close, but later doubled tariffs on Indian imports to 50%, raising doubts about the future of the U.S.-India relationship.
In recent weeks, Trump and top US officials criticised India for buying oil from Russia, saying New Delhi was funding the war in Ukraine, a charge India denies.
At the same time, Modi has engaged with China and Russia. He visited China last month for a summit hosted by Chinese President Xi Jinping and was also seen with Russian president Vladimir Putin.
Analysts cautious
"While the social media statements by Trump and Modi signal a potential rapprochement between the U.S. and India, it is still premature to assume that a resolution will arrive swiftly," Madhavi Arora, economist at Emkay Global, said.
"With Trump, we will need to wait for more concrete signals that a deal is in the offing."
Meetings to restart in September
Trade officials from India and the US may meet in September to restart in-person discussions, CNBC-TV18 reported, citing sources. A US trade negotiators’ visit to New Delhi scheduled for August 25-29 was cancelled after talks stalled.
India's trade ministry declined to comment on reports of new meetings.
According to US Census Bureau data, two-way goods trade between the US and India reached $129 billion in 2024, with a $45.8 billion US trade deficit.
Tariffs and EU pressure
Trump recently said India had offered to reduce tariffs on US goods to zero but described the offer as late, saying the country should have acted earlier.
Reuters reported that Trump urged the European Union to impose 100% tariffs on China and India as part of pressure tactics against Russian president Vladimir Putin.
Indian officials in New Delhi said they do not expect the EU to take measures against India and that assurances had been given that EU trade talks would not be disrupted.
INDIA must take an investor-centric approach to attract global funding for its growing sustainable infrastructure needs, the UK-India Infrastructure Financing Bridge (UKIIFB) said in a report released in London on Monday.
The UKIIFB, co-chaired by NITI Aayog and the City of London Corporation, completed one year this week. The group was launched in September last year to help bridge the gap between global investor interest and infrastructure projects in India.
Over the past year, the steering board of the group has consulted on projects such as national highways and regional rapid transport in India. The result is a report with proposals and recommendations to improve investor confidence and financing.
“The transformative UK-India Infrastructure Bridge, jointly steered by India's visionary policy think-tank NITI Aayog and the historic City of London Corporation, is unlocking vast international capital for India's infrastructure revolution,” said BVR Subrahmanyam, CEO of NITI Aayog and Co-Chair of the UKIIFB.
“This landmark partnership draws on India's unmatched capacity for high-growth, sustainable ventures and aligns it with the UK's proven skills in project finance and strategic execution,” he said.
“Together, we are crafting a robust framework to accelerate India's ambitious goals in smart cities, renewable energy, and connectivity,” he added.
Subrahmanyam said the collaboration under the UKIIFB strengthens India’s progress towards becoming a global economic power by combining domestic leadership with international cooperation.
The UKIIFB aims to build bilateral collaboration in project finance to meet India’s demand for sustainable infrastructure growth. Chris Hayward, Policy Chairman of the City of London Corporation and Co-Chair of the UKIIFB, said the initiative plays a “vital role” in mobilising capital for India’s critical infrastructure.
“This report makes a powerful case for action, outlining practical steps to make Indian infrastructure projects more attractive to global investors,” said Hayward, as he released the one-year report with Subrahmanyam.
“At its heart, the findings highlight a clear truth: international investors need clarity, confidence, and consistency – and India's growth ambitions deserve a financing model that matches their scale,” he said.
The report notes that India’s infrastructure demand is being driven by rapid urbanisation and a growing middle class. It adds that the target of USD 4.5 trillion investment in infrastructure by 2030 cannot be achieved through domestic investment alone.
For its second year, the UKIIFB has set out key proposals, including adopting an investor-centric approach to align with global investor priorities on risk, value and returns. It also calls for measures to address outdated perceptions of India’s infrastructure sector.
Other recommendations include aligning with global standards, enhancing transparency and risk management to build investor confidence, and creating a supportive environment for infrastructure development by fostering partnerships with local industry.
The City of London Corporation, the governing body of London’s financial district, leads the UK side of the partnership. The UKIIFB was launched as part of the UK Economic and Financial Dialogue (EFD) and is supported by a steering committee with members from the UK Treasury, construction, engineering and legal firms from both countries.
In its first year, the committee was tasked with advising policymakers on removing barriers to international private sector investment in Indian infrastructure and helping projects reach the stage where they are ready to attract investment.
(With inputs from agencies)
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Sitting at the centre of a long table, Trump was flanked by First Lady Melania Trump and Microsoft co-founder Bill Gates on one side, and Meta CEO Mark Zuckerberg on the other. (Photo: Getty Images)
US PRESIDENT Donald Trump praised Microsoft CEO Satya Nadella and Google CEO Sundar Pichai during a White House dinner with top technology executives on Thursday. The two Indian-American leaders thanked him for his leadership and for policies in the technology and AI sectors.
Trump described the gathering as a “high IQ group,” calling the executives “the most brilliant people.” Sitting at the centre of a long table, Trump was flanked by First Lady Melania Trump and Microsoft co-founder Bill Gates on one side, and Meta CEO Mark Zuckerberg on the other. Pichai and Apple CEO Tim Cook sat across from him, while Nadella was seated toward one end of the table.
“It’s an honour to be here with this group of people. They’re leading a revolution in business and in genius and in every other work you can imagine,” Trump said.
After his remarks, Trump invited the technology leaders to share their thoughts.
Pichai said the “AI moment is one of the most transformative moments any of us have ever seen or will see in our lifetimes. So making sure the US is at the forefront.” He called the White House’s “AI Action Plan,” announced in July, a “great start.”
“We look forward to working together. And thanks for your leadership,” Pichai told Trump. “Great job you’re doing. Incredible, really,” Trump replied.
Turning to Nadella, Trump said the Microsoft chief “has done a pretty good job” and pointed to Microsoft stock rising from USD 28 to over USD 500. “What a job you’ve done,” Trump said.
Nadella thanked Trump “for bringing us all together” and for policies that support US leadership in technology. He added that market access and global trust in American technology were key.
“I think that everything that you are doing in terms of setting in place the platform where the rest of the world can not only use our technology, but trust our technology more than any other alternative, is perhaps the most important issue, and you and your policies are really helping a lot,” Nadella said.
Nadella also thanked the First Lady for hosting a discussion on AI and economic opportunity. Trump responded: “A really amazing job you’ve done.”
Earlier in the day, Melania Trump hosted a meeting of the White House Task Force on Artificial Intelligence Education, joined by Pichai, IBM CEO Arvind Krishna and other industry leaders.
Speaking after Nadella, Gates said he is now in the second phase of his career, “giving away all the wonderful money that Satya’s good work has helped multiply a lot,” drawing laughter from Trump.
During the dinner, Trump asked Pichai about Google’s investment plans. Pichai said the company would invest USD 250 billion in the US over the next two years. “It’s great. We are proud of you. A lot of jobs,” Trump responded.
Trump also asked Nadella about Microsoft’s investment. Nadella said the company invests about USD 75–80 billion each year in the US. “Very good, thank you very much,” Trump said.
Responding to media questions at the event, Trump repeated his claim that he had “settled” seven wars, without naming them. He added that three of those wars had lasted 31, 34 and 37 years. Trump also said he would soon speak with Russian President Vladimir Putin, adding, “We are having a very good dialogue.”
Other attendees included Google co-founder Sergey Brin, OpenAI CEO Sam Altman and Oracle CEO Safra Catz.
(With inputs from PTI)
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The visit coincides with the 13th round of India-EU negotiations on a proposed free trade agreement, which both sides aim to finalise by December. (Representational image: iStock)
THE EUROPEAN Union's Political and Security Committee (PSC), made up of envoys from the 27 member states, will begin a five-day visit to India on Wednesday. The visit will focus on strengthening overall ties, including efforts to conclude a free trade agreement that has been under negotiation for years.
The committee, headed by Ambassador Delphine Pronk, is visiting India for the first time. It will hold strategic discussions with senior Indian government officials, defence industry representatives, civil society organisations and leading think tanks.
The PSC consists of EU member states' ambassadors based in Brussels and is chaired by the European External Action Service. It plays a key role in shaping the EU's common foreign and security policy (CFSP) and common security and defence policy (CSDP).
The visit coincides with the 13th round of India-EU negotiations on a proposed free trade agreement, which both sides aim to finalise by December. It also comes ahead of the next India-EU summit, expected to be held in India in the first half of next year.
"This extensive engagement aims to provide a comprehensive assessment of policy priorities, while exploring future avenues for enhancing cooperation on key foreign policy matters, security and defence, particularly in the lead up to the upcoming EU-India summit," an EU readout said.
The PSC monitors global developments and advises the Council of the European Union on strategic responses.
"EU-India collaboration is vital in key areas of mutual interest, including counterterrorism, cybersecurity, hybrid threats, maritime security and maritime domain awareness, space security, defence industry cooperation and countering foreign information manipulation and interference," Ambassador Pronk said.
"These critical issues will be high on our agenda and the insights and recommendations gathered from our visit will be presented to the top political leaders of the EU, paving the way for enhanced cooperation," she added.
Herve Delphin, the EU’s Ambassador to New Delhi, said the EU and India were "natural partners" with strongly converging interests and shared values.
"Our leaders are determined to elevate the EU-India Strategic Partnership and harness its immense potential," he said. "This partnership of mutual benefit can contribute to the prosperity and safety of our citizens and contribute to global stability and security."
Ambassador Delphin added that the visit by PSC underlines Team Europe’s intent to strengthen defence and security cooperation with India.
The EU readout said the visit builds on recent milestones, including the EU College of Commissioners’ visit to India in February, the first EU-India Strategic Dialogue in June, and the upcoming EU-India Summit in early 2026.
"The EU is one of India's largest trading partners and investors, with both sides aiming to conclude a free trade agreement by the end of 2025," it said. "The EU and India as large, pluralistic democracies share a strong commitment to upholding the rule of law, human rights, and democratic governance," it added.