Business

Iranian warship saga: Weerawansa points finger at India, raises questions over U.S. role

Published

6 months ago

2026/03/9

A fierce political storm erupted in Colombo on Saturday after former minister and National Freedom Front leader Wimal Weerawansa accused India of drawing Sri Lanka into the unfolding crisis involving Iranian naval vessels in the Indian Ocean.

Speaking to the media on March 7, Weerawansa claimed that the attack on the Iranian naval vessel IRIS Dena had taken place with the knowledge of India’s external intelligence agency, the Research and Analysis Wing (RAW), raising questions about how the visiting Iranian ships were allowed to sail into danger after participating in India’s recent fleet review.

“We all know how agile India’s RAW intelligence is,” Weerawansa said. “It warned Sri Lanka about the Easter Sunday attacks two days in advance. So how could it not know that Iranian ships invited by India were going to be attacked?”

The Iranian vessels had travelled to India at New Delhi’s invitation to take part in the international fleet review. However, he alleged that after the event concluded the ships were allowed to depart despite what he suggested may have been prior knowledge of an impending U.S. naval strike.

“Morally speaking, the first fault lies with India,” he said. “It was India that got Sri Lanka embroiled in this Iranian ship issue. India shouldn’t be trusted for five cents”, he said.

The attack on IRIS Dena has since triggered a chain of developments that placed Sri Lanka unexpectedly at the centre of a rapidly widening geopolitical confrontation.

Following the incident at sea, Sri Lanka evacuated more than 200 crew members from a second Iranian naval vessel, IRIS Bushehr, which had sought assistance while anchored near Colombo. The rescued sailors were brought ashore for humanitarian assistance before the vessel was escorted towards Trincomalee.

Iran’s Foreign Minister later thanked Sri Lanka for the rescue operation.

Now, Washington has urged Sri Lankan authorities to limit the possibility of Iran using the rescued sailors for propaganda purposes while urging Sri Lanka to not execute the repatriation of the Iranian crew.

Weerawansa alleged that the episode revealed how Sri Lanka was being pulled into the strategic calculations of larger powers.

“When the second Iranian ship first sought permission to enter Sri Lankan waters, our authorities consulted the U.S. Embassy in Colombo,” he said. “They were told that if the vessel entered Sri Lanka, it could face an air attack.”

According to his account, Sri Lanka initially informed Iranian diplomatic representatives that the ship could not be allowed to dock.

Weerawansa claimed that the decision was later reconsidered following appeals made through political intermediaries and subsequent discussions between Sri Lankan authorities and the U.S. Embassy.

“But now we see a ‘no repatriation’ stance emerging from Washington,” he said. “Why? Because the United States is looking for a way to become a direct stakeholder in this conflict from Sri Lankan territory.”

He further argued that the crisis had exposed the risks associated with Sri Lanka’s undisclosed defence arrangements with India.

Sri Lanka had recently signed a defence cooperation agreement with India, though its contents have not yet been presented to parliament.

“The country does not know what is in that agreement,” Weerawansa said. “The Foreign Minister himself said it cannot be shown without India’s permission.”

He also noted India’s strategic alignment with the United States through defence agreements and its participation in the Quadrilateral Security Dialogue (QUAD), arguing that Sri Lanka could inadvertently become entangled in those broader alliances.

“In such a backdrop Sri Lanka has now landed in a Catch-22 situation,” he said.

The controversy gained further attention on the international stage during the Raisina Dialogue in New Delhi on March 7, where India’s External Affairs Minister Dr. S. Jaishankar was questioned about whether the sinking of a visiting warship during a U.S.-Iran confrontation undermined India’s claim to be a “net security provider” in the region.

Jaishankar dismissed the question as “non-serious,” saying he would respond only to queries that took the “ground situation” into account.

With shipping lanes under threat and military operations intensifying, analysts say smaller states situated along critical maritime routes are increasingly being forced to deal with the competing strategic interests of major powers.

For Sri Lanka, the rescue of the Iranian sailors may have been a humanitarian gesture.

But according to Weerawansa, the episode could be only the beginning of a much larger geopolitical drama.

“Don’t rush to say this was handled in a statesman-like manner,” he warned. “What we are seeing may only be the interlude. The next episode may still be ahead,” Weerawansa warned.

According to a Hiru TV news report yesterday, the channel contacted the US State Department. In response, the State Department’s media office has stated that, under the circumstances, the US respects Sri Lanka’s sovereignty. It also has noted that it expects Sri Lanka to act in accordance with international laws while ensuring security, following its acceptance of the Iranian sailors from the IRIS Bushehr.

By Sanath Nanayakkare

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Business

Super El Niño threatens to deepen Sri Lanka’s drought and economic woes

Published

1 hour ago

2026/09/4

Thilina Walpola

By Ifham Nizam

A potentially dangerous El Niño is gathering strength across the Pacific, with the World Meteorological Organization (WMO) warning that the climate event is expected to become very strong and continue into February 2027, raising the risks of drought, floods, extreme heat and major disruptions to rainfall patterns worldwide.

The warning has particular significance for Sri Lanka, where communities in several agricultural districts are already facing severe drought, depleted water sources and shrinking farm incomes.

The WMO said yesterday that forecasts from its Global Producing Centres show an “exceptionally high likelihood of nearly 100%” that El Niño will persist through February next year. The organisation said this is the first time one of its El Niño/La Niña updates has been so unequivocal, reflecting strong agreement among forecasting systems.

The event, driven by exceptionally warm waters in the tropical Pacific, is expected to strengthen further in the coming months, reach very strong intensity and peak towards the end of this year. Its climate impacts, however, are expected to continue well into 2027.

According to Meteorological Organization

Sri Lanka is already experiencing the consequences.

A Reuters report published on Wednesday from drought-affected areas said rainfall deficits of between 85% and 100% have been recorded in important farming regions including Ampara and Monaragala.

Wells, tanks, rivers and lakes have dried up, while tens of thousands of people are depending on government water deliveries, with some remote communities reportedly waiting up to 23 days for supplies.

The drought is also rapidly becoming an economic problem for rural communities. Croplands have withered, livestock operations have been affected and farmers who have lost their harvests are being forced to seek daily-paid employment to survive.

The latest WMO outlook also warns that the consequences of El Niño will not necessarily be uniform. The severity and timing of impacts in individual countries depend on geography, season and other climate drivers, including conditions in the Indian and Atlantic oceans.

For Sri Lanka, the Indian Ocean Dipole (IOD) will therefore be crucial. The WMO expects a positive IOD to develop, with a September-November seasonal mean of about 0.9°C. This could modify the normal influence of El Niño on rainfall over the region.

That creates another potential risk for Sri Lanka: the country may have to prepare not only for continued drought but also for episodes of intense rainfall, flooding and landslides later in the year. Climate variability increasingly means that a prolonged water shortage can be followed by sudden and destructive rainfall rather than a gradual return to normal conditions.

For Sri Lanka, the warning should therefore be viewed as an economic and national-planning issue, not simply a meteorological forecast. Agriculture, drinking water, electricity generation, food imports, public expenditure and rural livelihoods could all be affected.

Business

ABC Trade & Investment – All-China Environment Federation partner to drive Sri Lanka’s green infrastructure and investment

Published

2 hours ago

2026/09/4

Thilina Walpola

ABC Trade & Investments (Pvt) Ltd, a leading homegrown conglomerate in Sri Lanka’s ICT distribution and diversified business landscape, has formally entered into a strategic Memorandum of Understanding (MoU) with the All-China Environment Federation (ACEF). The partnership establishes a collaborative framework aimed at accelerating new-energy development, water management, and environmental protection projects across Sri Lanka.

The agreement bridges advanced Chinese engineering capabilities, equipment, technical expertise, and investment resources with ABC Trade & Investments’ local operational strength, market insight, and project implementation skills. By pairing international technology with on-the-ground execution, the initiative is designed to address Sri Lanka’s long-term environmental and civil infrastructure priorities.

The MoU was signed by Amalrajah Jayaseelan, Director/CEO of ABC Trade & Investment (Pvt) Ltd, and Shi Xiang, Secretary-General of the Belt & Road Eco-Industry Cooperation Working Committee of ACEF. The signing took place during the China–Sri Lanka Environmental & Energy Exchange and Cooperation Meeting at the Nondescripts Cricket Club Grounds in Colombo, held under the theme “Empower Green Development, Jointly Build a New Pattern of China–Sri Lanka Environmental & Energy Industry.”

Business

Heavy buying interest slows down stock trading

Published

2 hours ago

2026/09/4

Thilina Walpola

By Hiran H. Senewiratne

The CSE yesterday was very active at the outset but later slowed down due to heavy buying interest noted for select stocks.Amid those developments both indices moved upwards. The S and P SL20 went up by 23.73 points. Turnover stood at Rs 2.44 billion with 10 crossings.

The crossings were: Renuka Foods 19 million shares crossed for Rs 502 million; its shares traded at Rs 25.30, Dipped Products 1.9 million shares crossed to the tune of Rs 117 million; its shares traded at Rs 60.50, JKH 3.9 million shares crossed for Rs 78 million; its shares sold at Rs 19.70, Dialog Axiata 1 million shares crossed to the tune of Rs 46.6 million; its shares traded at Rs 46.40, Tokyo Cement 500,000 shares crossed for Rs 39.5 million; its shares sold at Rs 79 and Watawela Plantations 800,000 shares crossed for Rs 34 million; its shares were Rs 42.50 each.

In the retail market companies that mainly contributed to the turnover were; Vallibel Finance Rs 281 million (3.3 million shares traded), Dipped Products Rs 114 million (1.9 million shares traded), Haycarb Rs 90 million (424,000 shares traded), Alumax Rs 42 million (2.6 million shares traded), HNB Rs 38.5 million (102,000 shares traded), Swisstec Rs 30 million (506,000 shares traded) and Sierra Cables Rs 34 million (880,000 shares traded). During the day 118 million share volumes changed hands in 17802 transactions.

It is said that mixed market reactions were noted during the day. Financial sector, especially Vallibel Finance, performed well, while the manufacturing sector, especially JKH and Hayleys , performed significantly.

Meanwhile, Co-operative Insurance Company announced the redemption of 1,100,000 cumulative redeemable preference shares issued in December 2020 to the Health Department Co-Operative Thrift & Credit Society.

The total redemption consideration of Rs 16.61 million, including a 9 percent per annum cumulative dividend, is set for settlement on August 31, 2026.

Yesterday the rupee was quoted at Rs 328.25/35 to the US dollar in the spot market, stronger from Rs 328.30/60 the previous day, while bond yields were somewhat steady, dealers said.