Iran invests US$1.5 bn in energy sector

By Dilrukshi Fernando

A whopping US$1.5 billion will be invested by the Iranian Government in a joint venture to develop natural energy resources in Sri Lanka, Minister of Foreign Affairs Rohitha Bogollagama said at a media briefing yesterday.

The rehabilitation and upgrading of the Sapugaskanda oil refinery, which is the only such refinery in Sri Lanka, will also be developed to adhere to modern standards and achieve maximum productivity, the minister added.

“Sri Lanka spends millions of its Gross Domestic Product on oil imports,’ Bogollagama said adding further that this venture will be a saving, economically. In addition, the Uma Oya irrigation and hydro power project will also be launched next week.

Enterprise Development and Investment Promotion Minister Sarath Amunugama in the meantime stated at a business forum organized by the Board of Investment and the Presidential Secretariat yesterday, that the agreement for the Uma Oya project will be signed in the coming week. These latest development projects come in the wake of the impending visit of Iranian President Mahmoud Ahmadinejad to Sri Lanka on April 28th.

Responding to questions on nuclear energy production, Minister Bogollagama stated that India is on the agenda as the country to be approached for the matter. He denied any aspirations of requesting Iranian assistance for nuclear energy despite the Ceylon Electricity Board stating that it hoped to discuss the issue with the Iranian Government officials due in the country next week.

In the meantime, a gem and jewellery factory employing Sri Lankan craftsmen is to be set up in Egypt, Vice Chairman of the group Cecille Kotelawala said. Mrs. Kotelawala made these comments at a media briefing at the Ministry of Foreign Affairs yesterday.

The move comes as a result of an official visit made to Egypt by a Sri Lankan delegation including members of the business community, headed by Foreign Minister Rohitha Bogollagama, recently.

“The Egyptian government expressed interest in employing the services of Sri Lankan jewel craftsmen, noted for their workmanship and oriental designs,” she added.

Chamber of Commerce Secretary General Prema Cooray who was part of the Sri Lankan delegation alongside Mrs. Kotelawala, announced the move to initiate a Sri Lanka-Egypt Business Chamber Council to be set up soon.

“There has been a hundred percent increase in exports and a three hundred percent increase in imports which has garnered more than US$30 million in exchange for Sri Lanka,” Cooray said elaborating the reasons for the business partnership.

The Egyptian government had also expressed interest in the Sri Lankan tea sector; with the aim of enabling Sri Lanka to enjoy the profitable position it once held in the global market, Cooray said adding that, “Egypt has a great number of tea drinkers which provide a conducive environment for Sri Lanka to enter its market as a competitor.”

A corporation agreement was signed for this purpose while steps to strengthen the island’s Tourism Industry were also discussed at the bilateral meetings Cooray concluded.