China suspended energy projects in Sri Lanka due to security concerns from a 'third party.'

China has stopped a project to build hybrid energy plants in three Sri Lankan islands, citing "security concerns" raised by a "third party," amid claims that India is concerned about the project's location.

According to a report in newsfirst, the Chinese company Sino Soar Hybrid Technology was awarded the contract to install a hybrid renewable energy system in the Delft, Nagadeepa, and Analthivu islands off the coast of Jaffna in January.

On Thursday, the Lk news website was updated.

The three islets are close to the Tamil Nadu coast.

The Chinese embassy here verified this in a tweet on Wednesday, without identifying India,"Sino Soar Hybrid Technology, being suspended to build Hybrid Energy system in 3 northern islands Flag of Sri Lanka due to 'security concern' from a third party".

Instead, Beijing signed a contract with Male on November 29 to build solar power plants on 12 Maldivian islands, according to the report.

According to newsfirst.Lk, India made a "strong protest" with Lanka in early 2021 over the award of the tender for the construction of renewable energy power plants at Delft, Nagadeepa, and Analthivu to a Chinese business.

The contract was awarded as part of the Asian Development Bank-funded Supporting Electricity Supply Reliability Improvement Project, which is being conducted by the Ceylon Electricity Board (CEB).

The Sri Lankan government granted the contract to develop Colombo Port's eastern container terminal to the state-run China Harbour Engineering Company last month, months after scrapping a tripartite pact with India and Japan to build the deep-sea cargo port.

Under Beijing's contentious Belt and Road Initiative, China is one of the largest investors in different infrastructure projects in Sri Lanka (BRI). However, there has been widespread criticism, both domestically and internationally, and growing concerns that China is luring Sri Lanka into a debt trap.

As part of a USD 1.2 billion debt exchange, the island government gave up the strategically crucial Hambantota port to a state-run Chinese enterprise for a 99-year lease in 2017.