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Foreign Secy. underscores significance of economic partnership with the UK

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From left: British High Commissioner Sarah Hulton, Sir Barton, Aruni Wijewardane and Additional Secretary (Bilateral, West) Manisha Gunasekera

Foreign Secretary Aruni Wijewardane has highlighted the significance of Sri Lanka’s economic partnership with the UK, under the Developing Countries Trading Scheme (DCTS), which provides duty free access to the UK market, as well as in other sectors, such as enhancing UK’s contribution to Sri Lanka’s tourism and skilled labour migration.

Wijewardane addressed this issue when she received Permanent Under-Secretary of the Foreign, Commonwealth and Development Office (FCDO) of the United Kingdom, Sir Philip Barton, at the Foreign Ministry, in Colombo, on Tuesday (17). The constructive bilateral engagement took place in the 75th year of UK-SL diplomatic relations.

Foreign Secretary Wijewardane briefed the UK Permanent Under-Secretary on current developments in the country and the Government’s plans for 2023 as a year of socio-economic stabilization, reconciliation and recovery. Permanent Under- Secretary Barton encouraged Sri Lanka’s efforts and reiterated the support of the UK in this regard.

The two sides appreciated the potential to further expand trade and investment ties, including reaction to climate change objectives, and in achieving Sri Lanka’s target of achieving 70% renewable energy by 2030.

Both sides reiterated their mutual interest to initiate a Sri Lanka – UK Dialogue in the first quarter of 2023, with a view to elevating the existing multifaceted engagement and to work towards achieving tangible results through a result-oriented approach on several areas of mutually beneficial cooperation.

Foreign Secretary Wijewardane and Permanent Under-Secretary of the FCDO appreciated the vibrant people-to-people ties emanating from the significant community of Sri Lankan heritage in the UK. Foreign Secretary Wijewardane apprised the Permanent Under Secretary on the Government’s intent to further engage with the overseas Sri Lankan community to better harness their synergies for mutual benefit. It was agreed to commemorate the 75th anniversary of UK-Sri Lanka diplomatic relations this year in a manner reflective of the long standing relations in a forward-looking and result-oriented manner.

In an exchange of views on regional and international developments, Foreign Secretary Wijewardena briefed the UK Permanent Under-Secretary on Sri Lanka’s policy priorities in Indian Ocean engagement, as well as the country’s assumption of the Chair of the Indian Ocean Rim Association (IORA) this year.

During the visit, Sir Barton called on the Minister of Foreign Affairs, Ali Sabry, the State Minister of Finance, Shehan Semasinghe, and the Chief of Staff to the President, Sagala Ratnayaka.

Sir Philip Barton was accompanied by the British High Commissioner, Sarah Hulton, and officials of the British High Commission and the UK FCDO. Senior officials of the Foreign Ministry also participated in the meeting.



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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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