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Verbal battle over Trinco oil tank farm

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By Saman Indrajith

A tense situation prevailed in the House, yesterday, with the government and Opposition MPs being engaged in a verbal battle over the Trincomalee Oil Tank Farm.

A heated argument erupted when Chief Opposition Whip and Kandy District SJB MP Lakshman Kiriella raised concerns about the statements made by the Energy Minister on the Trincomalee Oil Tank Farm.

MP Kiriella said that the 15 oil tanks had been given to India and others reserved to be jointly developed by the IOC and Sri Lanka. “I was shocked to hear a statement by the Energy Minister that all oil tanks had already been given to India. There are 100 oil tanks of which 15 have been given to IOC.

There are 85 others to be developed jointly by Sri Lankan and the IOC. That did not happen,” MP Kiriella said.

SJB Kegalle District MP Kabir Hashim said that LIOC kept the oil tanks illegally and the government could have reacquired the oil tanks between 2005 and 2015 period.

MP Hashim also demanded to know from Minister Gammanpila whether the government would reacquire the tanks now. “The government is lying. Do not mislead the House. It is an MoU that we are talking about. It was agreed that MoU would go for a fully-fledged agreement after six months but that did not take place. Therefore, the LIOC is holding on to the tanks illegally. In 2005, you made an election pledge to take them over, but did not fulfil. After ten years in 2015, the LIOC was given space and permission to construct a lubricant plant. The tanks could have been taken back. It could be taken over even now. What I am asking is whether you will take it back or not.”

Energy Minister Udaya Gammanpila challenged the Opposition Members to table the MoU at issue.

Chief Opposition Whip Kiriella: “Eighty five tanks have not been given to India. They have been referred for joint development.”

MP Hashim: “If you are saying there is an agreement. Table it in the House so that people could know. After seeing the agreement we can accept what you say here.

Galle District SJB MP Manusha Nanayakkara said that State Minister Susil Premajayanth had in a TV talk show revealed the truth the previous day. The energy minister was lying. Their statements were contradictory.

State Minister Dayasiri Jayasekera asked Minister Gammanpila whether there was a clause on a condition of going for another agreement in six months.

Minister Udaya Gammanpila said that the agreement in question was not a permanent one, and it was a lease agreement and would be tabled in Parliament. “There is no point in arguing this matter. I will table the official agreement between India and Sri Lanka on the Trincomalee oil tanks today,” the Minister said.



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Sri Lanka, India caught in US-Iran ship crisis

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By Shamindra Ferdinando

Iran has sought the Indian intervention, at the highest level, to provide lifesaving support to the crews of empty Iranian vessels stranded just outside Sri Lanka’s 12-nautical mile territorial waters off Galle.

Sources familiar with the issue said that Iran had brought the developing situation to the attention of New Delhi as the crews of almost 20 vessels, included Indian nationals. Sources stressed that the group of vessels that unloaded crude oil a couple of months back were now stranded within Sri Lanka’s Exclusive Economic Zone (EEZ).

The US Navy torpedoed an unarmed Iran frigate, returning from India, on 04 March, 2026, about 19 nautical miles off the Galle coast. The unprovoked attack killed nearly 100 Iranians.

The Iranian Embassy in Colombo has inquired from the Indian High Commission of their response to the situation, sources said. The US has issued a global warning against providing food, water, medicine and other services to the Iranian vessels. The outcome of Iran-India talks on the issue at hand was not known, though sources asserted India may not throw its weight behind Iranian efforts to address the issue.

Responding to The Island queries, sources said both Sri Lanka and India were in a dilemma due to the US warning. India couldn’t ignore the plight of the Indian crew members and the Iranian vessels in its backyard.

The Sri Lankan government remains tight-lipped about the vessels stranded in its EEZ. Our efforts to elicit a response from relevant authorities were in vain. In addition to Indians, there are Bangladeshis among the crew members. Iran has explicitly stated the responsibilities of the countries concerned to provide assistance in terms of international law.

The Iranian position was articulated by its Ambassador to Sri Lanka, Dr.Alireza Delkhosh, recently. In a special statement, Ambassador Delkhosh emphasised that in terms of the Convention on the Law of the Sea (Article 98) as well as SOLAS and SAR

Conventions, Sri Lanka couldn’t refrain from providing the needs of the Iranian vessels stranded in its EEZ.

SLMC leader Rauff Hakeem lambasted the NPP government in Parliament for failing to provide assistance to the Iranian ships. The former Minister alleged that the government was simply carrying out dictates of the US. He strongly criticised the way Foreign Minister Vijitha Herath was handling the issue.

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Namal further remanded

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MP Namal Rajapaksa being brought to the Colombo Magistrate’s Court yesterday. Pic by Nishan S Priyantha

MP Namal Rajapaksa, who is in remand custody over the controversial Airbus deal, was further remanded until October 27 by the Colombo Magistrate’s Court yesterday (13).

Colombo Chief Magistrate Asanga S. Bodaragama made the order after considering submissions by officers of the Commission to Investigate Allegations of Bribery or Corruption and lawyers representing Rajapaksa.

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IMF projects Lankan economic growth to moderate amidst mounting global uncertainties

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Sri Lanka’s economy is expected to sustain its recovery over the next two years, although growth is projected to moderate amid mounting global uncertainties, according to the International Monetary Fund’s (IMF) latest World Economic Outlook.

In its World Economic Outlook 2026: Resilience Under Strain, Urgent Choices, the IMF projects Sri Lanka’s economy to expand by 4% in 2026, slowing to 3.7% in 2027, following estimated growth of 5% in 2025.

Inflation, meanwhile, is forecast to rise to 5.3% in 2026 and 5.4% in 2027, reversing the average deflation rate of 0.5% recorded in 2025.

Unemployment is expected to remain steady at 3.9% throughout the forecast period.

The projections come amid growing pressure on the global economy from the ongoing conflict in the Middle East, elevated energy prices, geopolitical tensions and trade disruptions.

Sri Lanka’s external position is also expected to weaken, with the current account balance projected to shift from a surplus of 1.6% of gross domestic product (GDP) in 2025 to deficits of 0.5% in 2026 and 0.3% in 2027.

The IMF’s outlook points to continued economic expansion in Sri Lanka, but with slower growth, rising inflation and a narrowing external surplus giving way to current account deficits over the forecast period.

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