A.M.M.MUZAMMIL
COLOMBO – Iran and Sri Lanka formally established diplomatic relations in 1961, and since then, their ties have grown from strength to greater strength.
Over the past 60 years, Iran has consistently supported Sri Lanka’s development across sectors such as infrastructure, education, healthcare, and energy. This unconditional and genuine partnership has fostered both national progress and a lasting bond of trust between the two countries.
During Sri Lanka’s conflict with the LTTE, Iran—alongside Pakistan—stood firmly in support while many others hesitated. Iran’s military assistance, including weapon supplies and the training of Sri Lankan personnel, played a crucial role in safeguarding national sovereignty.
Additionally, Iran provided low-interest credit lines that enabled Sri Lanka to acquire essential military equipment, further underscoring its unwavering commitment during one of the country’s most challenging periods.
A closer examination of Iran’s assistance to Sri Lanka reveals a consistent pattern—whether economic or developmental, all aid has been generously extended without strings attached or hidden demands. This unconditional support stands as a clear testament to Iran’s sincere commitment to stand by Sri Lanka in its times of need.
Iran significantly bolstered Sri Lanka’s infrastructure programs by extending a substantial assistance package valued at USD 1.5 billion. This commitment was announced following the official visit of then-President Mahinda Rajapaksa to Iran, during which eight memoranda of understanding were signed, covering a range of development projects.
Among them was an MoU focused on enhancing oil refinery capacity and advancing irrigation initiatives. Notably, nearly half of the total assistance—USD 700 million—was allocated for upgrading Sri Lanka’s sapugaskanda oil refinery, with the objective of increasing its production capacity from 50,000 barrels per day to 150,000 barrels.
Most importantly, Iran provided oil to Sri Lanka on deferred payment terms during economic crises.
Iran remains one of the top five importers of Ceylon Tea, continuing to play a vital role in sustaining Sri Lanka’s tea industry. In a notable development, cash-strapped Sri Lanka exported approximately USD 20 million worth of tea to Iran as part of a barter agreement aimed at offsetting a USD 251 million oil debt.
Iran has played a significant role in Sri Lanka’s development through sustained contributions in infrastructure, education, health, and diplomacy. With over USD 80 million invested in upgrading key roadways such as the Kandy–Mahiyangana Road, the A9 Highway, and the Polonnaruwa–Batticaloa corridor, Iran has helped enhance regional connectivity and economic integration.
In education, Iran has granted more than 200 scholarships to Sri Lankan students in vital fields like engineering, medicine, and agriculture, strengthening national capacity and innovation. Humanitarian and health support—particularly during the COVID-19 pandemic—has further demonstrated Iran’s solidarity during times of crisis.
A key diplomatic milestone was the state visit of President Mahmoud Ahmadinejad to Sri Lanka in April 2008, following President Mahinda Rajapaksa’s earlier visit to Iran, reflecting the deepening of bilateral ties.
The Uma Oya Multipurpose Development Project is a landmark example of Iranian engineering and a symbol of strong Iran–Sri Lanka cooperation. Jointly inaugurated by President Ranil Wickremesinghe and former President Ebrahim Raisi, the $540 million project—partially funded by Iran—features an innovative water diversion system and an underground hydropower station.
Once fully operational, it will generate 120 megawatts of clean energy and irrigate 25,000 acres of farmland. The project underscores Iran’s consistent and tangible support for Sri Lanka’s sustainable development, especially in times of need. -Thank you, Iran
