A new chapter in Lanka-Iran ties

Iranian President arrives in Sri Lanka today:

Rohan Mathes and Sarath Malalasekara

COLOMBO: The President of the Islamic Republic of Iran Dr. Mahmoud Ahmadinejad will arrive in Sri Lanka today on a two-day official visit, at the invitation of President Mahinda Rajapaksa.

The visit which marks the beginning of President Ahmadinejad's Asian tour, will enhance the growing political, economic and cultural links between the two friendly countries. The Iranian President is accompanied by a 15-strong delegation including Foreign Minister Manouchehr Mottaki and Commerce Minister Mir Kazemi.

He will be welcomed at the Bandaranaike International Airport this afternoon by President Rajapaksa. The Navy will accord a Guard of Honour to the visiting President.

The Iranian President is scheduled to hold talks with President Rajapaksa, Prime Minister Ratnasiri Wickramanayaka and Foreign Minister Rohitha Bogollagama.

He would also meet a delegation of leaders from all faiths in the country and participate in a religious ceremony.

The main focus of the Iranian President's epoch-making visit would be Tuesday's inauguration of the US$ 450 million multi-purpose Uma Oya irrigation project in Wellawaya.

The dam which will be constructed across the Uma Oya in Puhulpolla, Welimada in the Uva Province, will irrigate the Kirindi Oya reservoir in Wellawaya and generate over 100 Megawatts of power to the national grid.

The project which would be the longest ever hydro-tunnel to be built in the country, would be fully funded by the Iranian Government, as a soft loan under concessionary terms.

Sri Lanka is targeting self sufficiency in rice with nearly 25,000 acres of new fertile lands in Uva-Wellassa and Ruhuna coming under the plough within the next two to three years with the completion of this project.

Sri Lankan Ambassador to Iran M. M. Zuhair, who is now in Sri Lanka told the Daily News that Uma Oya is a vital development project that will not only uplift the segment of rural poor in Uva Wellassa and help implement with greater vigour the Mahinda Chinthana concept of transforming dry lands to agricultural lands.

The other major project due to be inaugurated on Tuesday by the Iranian President is the expansion of the Sapugaskanda refinery which will make Sri Lanka self-sufficient in Aviation fuel and Bitumen (tar). The project envisages to increase the daily output capacity of 50,000 barrels to 150,000 barrels of refined oil.

According to a joint study by the two countries, Sri Lanka will require 501,000 metric tons of aviation fuel in two to three years when the expanding refinery would commence production, while the new refinery is targeting to produce 544,000 MT per annum.

Another by-product of the refinery is bitumen, used in road construction and manufacture of roofing sheets. The projected demand is 75,000 MT per annum while the new refinery is expected to produce about 90,000 MT annually.

The domestic requirement of LPG used mainly as fuel for cooking would also be totally met from the new refinery.

Both projects are funded by the Islamic Republic of Iran to the tune of over US$ 1.9 billion, which was pledged during President Mahinda Rajapaksa's State visit to Iran in November last year.

Eight MoUs were inked between Sri Lanka and Iran when Iran accorded a red carpet welcome to President Rajapaksa and his entourage on their official visit.

The MoUs pledge financial assistance and active support in the provision of technical know-how and expertise in the spheres of Merchant Shipping, the Uma Oya multi-purpose irrigation project, the expansion and modernisation of the Sapugaskanda Oil Refinery project, power generation, the enhancement of co-operation in the fields of Customs, tourism and bilateral radio and television transmission networks, under a agreement in media co-operation between the Sri Lanka Ministry of Mass Media and Information and the Islamic Republic of Iran Broadcasting.

It would also include enhancement of trade, commerce, private business and investment sector, encompassing the Iran Chamber of Commerce, Industry and Mines and the Federation of Chambers of Commerce and Industry and the National Chamber of Commerce of Sri Lanka. "These achievements were made possible due to the visit of the Sri Lankan President to Iran in November last year.

The Sri Lankan Government and the people are appreciative of the aid approved by the Iranian President for the economic development of Sri Lanka," Ambassador Zuhair said.

The Ambassador said "we should pay thank the late Minister Jeyaraj Fernandopulle, Ministers John Seneviratne. Kumar Welgama, Milinda Moragoda, A.H.M. Fowzie, Deputy Minister Hussain Bhaila, Treasury Secretary P.B. Jayasundera, Foreign Secretary Palitha Kohona and several others who had assisted to promote the two projects in Sri Lanka".

The Iranian President is also visiting India and Pakistan.