Business
Korea – Sri Lanka diplomatic relations mark 45th Anniversary today
Korea has been a friend of Sri Lanka in its hour of need, says Ambassador Santhush Woonjin Jeong
This is an opportunity for our two Asian nations to redouble our efforts to attain regional peace and prosperity’
November 14th 2022 (today) marks the 45th anniversary of the establishment of the diplomatic ties between Korea and Sri Lanka. Issuing a press statement on the important occasion, Ambassador of the Republic of Korea to Sri Lanka, Santhush Woonjin Jeong says that he would like to celebrate the meaningful day together with Sri Lanka and Sri Lankan people.
“Since the establishment of diplomatic relations in 1977, our relationship has been robust. Korea and Sri Lanka have many common factors such as similar geographical location and historical experiences that have contributed to a deeper mutual understanding. As the Korean Ambassador, I have made numerous efforts to elevate our relations on in a whole spectrum of fields of mutual interest spanning political, economic, education, and cultural cooperation,” , he says.
The Ambassador further notes:
“When it comes to development projects, I proudly introduce the major achievements made by KOICA, EXIM bank Korea in collaboration with the Government of Sri Lanka. KOICA has conducted numerous projects with pivotal strategic goals such as education, transportation, water resources, food, and agricultural development, and successfully elevating the development of Sri Lanka. I truly believe that as a reliable friend, Korea is a trustworthy partner of Sri Lanka to meet the current needs of national development. With these as momentum, the bilateral ties are expected to widen and deepen further in the coming years.”
“Sri Lanka is a priority official development assistance cooperation partner country and also one of the top five nations to benefit from its Economic Development Cooperation Fund (EDCF). Sri Lanka is so precious to Korea. The investment in various ODA projects and grants benefitting Sri Lanka since 1987 exceeds US$ 900 million in a total of concessional loans through the Export-Import Bank of Korea (Korea Eximbank). For instance, the Framework Arrangement enabling the Sri Lankan Government to obtain soft loans of a value of up to $500 million (USD) from the Economic Development Cooperation Fund (EDCF) of the Korean Government was set up for the years 2020 to 2022. At the same time, the New Village Movement known as the Saemaul Foundation in Sri Lanka and KOPIA has achieved success in developing rural livelihood through meaningful initiatives implemented in Sri Lanka.”
“I believe that deepened economic engagement is important to harness synergetic opportunities in trade and investment. Sri Lanka is strategically valuable considering its geopolitically significant location, abundance of natural resources, and skilled human resources. Korea’s capital and state-of-the-art technology will be complementary to create the perfect synergies for our two countries to advance bilateral economic cooperation. The trade volume between Korea and Sri Lanka has increased by 30-fold since its establishment of diplomatic ties in 1977. Korea was one of the biggest investors in Sri Lanka in the 1990s. Like the Korean journey towards economic development, well known as the ‘the Miracle on the Han River’ of Korea, I would like to witness Sri Lanka work ‘a Miracle on the Kelani River’ in the near future. Challenge is another chance. It is now time to realize the untapped potential of this beautiful country and achieve our common economic goals together. KOTRA in Colombo, a specialized agency for commercial ties, is working very hard to consolidate our bilateral economic cooperation.”
“The ongoing labour cooperation is a very important aspect of our bilateral relations. Around 25,000 Sri Lankan workers are presently employed in Korea, contributing to economies of our two countries. Before the COVID-19 pandemic, they have transmitted around 520 million USD annually to Sri Lanka in 2019. The EPS centre in Colombo has contributed to the facilitation of migrant employment and promotes the bilateral labour relations. Sri Lankan employees in the Republic of Korea are a great asset to strengthen economic and commercial ties of both countries.”
“Cultural cooperation is also a key pillar of our bilateral cooperation. Korean dramas, movies, music and cuisine have attracted a global audience including Sri Lankans. I thank all Sri Lankans for your interest and enthusiasm shown for the Korean culture, cinema, dramas, and cuisine. In commemoration of the 45th anniversary of diplomatic relations between Korea and Sri Lanka, the Korean Embassy organized a series of special cultural events like the Korean Lantern Festival, Quiz on Korea, K-pop World Festival and Korean Ambassador’s Taekwondo Championship, Korean Film Festival and the Virtual Tour to Korea 2022. The love and support shown by Sri Lankans for these events is a source of great motivation and encouragement for the Korean Embassy. I hope that you will continue to stand with us and promote the Korean culture. Of course, I would like to make more efforts to promote cooperation between our two countries in the fields of movies, dramas and culture.”
“Reflecting on the growing interest in the K-wave among the Sri Lankan people, Korean language has been officially adopted as a foreign language in the advanced level curriculum from last year and students can sit for the Korean language examination in the university entrance examination by 2023.The Sri Lankan Education Ministry’s proactive initiatives to adopt the Korean language are well appreciated and commended by Korea.”
“I also mention that Korea has been a friend of Sri Lanka in its hour of need. International cooperation and solidarity were key factors to overcome global challenges that the world faced. Korea made utmost efforts to join the global efforts to respond to the COVID-19 pandemic as a responsible member of the international community. The Republic of Korea has stood in solidarity with Sri Lanka to help strengthen the government of Sri Lanka’s national response to the pandemic. Under the “stay strong” campaign, Korea has been a friend indeed in times of need, by donating around $3 million worth of equipment to combat the COVID-19 virus in Sri Lanka in the last two years.”
“I believe that the 45th Anniversary of the establishment of diplomatic relations will be a great opportunity for our two Asian nations to redouble our efforts to attain regional peace and prosperity. Korea is one of the most significant countries which can assist Sri Lanka in realising the vision for its future. I look forward to the next 45 years to make our bilateral relations more prosperous and productive.”
“As the Ambassador of the Republic of Korea like the meaning of my Sri Lankan name “Santhush,” I would like to carry happiness to Sri Lanka. I love Sri Lanka. I love Sri Lankan people. On this occasion of celebrating this important milestone, on behalf of the government and the people of the Republic of Korea, I take this opportunity to wish every success, peace, and prosperity to the government and the friendly people of Sri Lanka. I will closely work with all of you to achieve our common goals.”
Global oil prices have risen after at least three ships were attacked near the Strait of Hormuz, as Iran continues to launch strikes across the Middle East in response to ongoing attacks by the US and Israel.
Two vessels have been struck, and an “unknown projectile” was reported to have “exploded in very close proximity” to a third, the UK Maritime Trade Operations Centre (UKMTO) said.
Iran has warned ships not to pass through the strait, which carries about 20% of the world’s oil and gas.
International shipping has almost come to a standstill at the strait’s entrance, with analysts warning that a prolonged conflict could push energy prices even higher.
In early trade in Asia on Monday, global oil prices jumped by more than 10% before those gains eased during the morning.
At 02:00 GMT, Brent crude was more than 4% higher at $76.16 (£56.53) a barrel, while US-traded oil was also up by around 4% at $69.67.
“The market isn’t panicking”, Saul Kavonic, head of energy research at MST Research told the BBC.
“There is more clarity that so far, oil transport and production infrastructure hasn’t been a primary target by any side,” he added.
“The market will be watching for signs that traffic through the Strait of Hormuz returns, which would see oil prices subside again.”
But some analysts have warned it could go over $100 in the event of a prolonged conflict.
On Sunday, the Opec+ group of oil producing nations – which includes Saudi Arabia and Russia – agreed to increase their output by 206,000 barrels a day to help cushion any price rises, but some experts doubt this would help much.
Edmund King, president of the AA, warned the disruption could drive up petrol prices around the world.
“The turmoil and bombing across the Middle East will surely be a catalyst to disrupt oil distribution globally, which will inevitably lead to price hikes,” he said.
“The magnitude and duration of pump price increases depends on how long the conflict goes on.”
The U.S. and Israeli strikes on Iran have reignited geopolitical tensions in the Middle East, stoking fears of a broader conflict that could disrupt critical energy supply routes – particularly the Strait of Hormuz, through which roughly one-fifth of the world’s oil supply flows. Brent crude has already edged higher, and global oil markets warn prices could climb toward, or even exceed, US$80–100 a barrel if hostilities escalate.
Against this backdrop, an independent economic analyst told The Island that for Sri Lanka – a small, fuel-importing economy with limited domestic energy resources – the implications could be significant.
“Sri Lanka imports over 90% of its petroleum requirements, and any sustained rise in global crude prices would expand the annual import bill, placing renewed pressure on already tight foreign exchange reserves,” he said.
Even moderate spikes in oil prices, he noted, tend to filter quickly through the domestic economy. “Higher fuel costs translate into increased transport and production expenses, which feed into inflation and erode household purchasing power. Freight charges for essential goods – from food items to industrial inputs – would also rise.”
“The Middle East remains a key source of remittances and export demand,” the analyst explained. “A large share of Sri Lankan migrant workers are employed in Gulf economies, while regional markets absorb tea and other exports. Heightened instability could weaken remittance inflows and soften demand, further straining the balance of payments.”
When asked whether the Central Bank of Sri Lanka (CBSL) might be compelled to shift policy in response, the analyst said the monetary authority faces a delicate balancing act.
“Rising import inflation stemming from higher global energy prices could push the Central Bank to maintain – or even tighten – its monetary policy stance in order to safeguard price stability and support the rupee. A firmer stance may be deemed necessary to anchor inflation expectations and preserve market confidence. The Central Bank is therefore likely to monitor inflation data closely in the coming weeks to assess whether energy-driven price pressures prove temporary or more entrenched,” he said.
Meanwhile, Ceylon Petroleum Corporation (CPC) Chairman S. Rajakaruna said that Sri Lanka’s fuel imports – sourced primarily from Singapore and India – reduce immediate exposure to supply disruptions directly linked to Middle Eastern routes. He also sought to allay public concerns, noting that the country currently maintains sufficient fuel stocks for approximately one month and that there need not be any queueing up by the public to hoard supplies.
However, the analyst cautioned that while physical supply may remain stable, global price pass-through effects are an unavoidable risk.
Meanwhile, Opposition politician Wimal Weerawansa said that official assurances of “one month’s stock” tend to unsettle the public, arguing that such statements evoke memories of past shortages and public distress.
By Sanath Nanayakkare
The Ministry of Education officially recognised LOLC Holdings PLC for its flagship humanitarian initiative, Divi Saviya, at a special ceremony held on 27th February 2026 in Battaramulla. The event marked the second time the Ministry has acknowledged the programme’s contribution to the nation’s education sector.
Group Managing Director/CEO Kapila Jayawardena presented a project update to Prime Minister and Education Minister Dr. Harini Amarasuriya, highlighting the rapid restoration of 200 schools under Phase 02 of ‘Obai, Mamai, Ape Ratai’. The schools were repaired and handed over within just 45 days, enabling students displaced by Cyclone Ditwah to safely resume learning.
Phase 02 follows a needs assessment that identified 200 damaged schools and 4,000 displaced families. Implemented with Divisional Secretariats and Disaster Management Centres, the Rs. 500 million programme has delivered Family Super Packs and school renovations across six districts.
Kapila Jayawardena stated, “It was a privilege to share these outcomes with the Prime Minister. This recognition reflects how private sector collaboration can complement government efforts during national challenges.” Plans are underway to fully rebuild select schools destroyed by the cyclone.
Oil prices rise after ships attacked near Strait of Hormuz
War photographer Paul Conroy dies as tributes paid
Allies of US in the Gulf bear brunt of Iran attacks
Dry weather will prevail in most parts of the island
Israel resumes attacks as Iran vows to avenge supreme leader’s death
CPC has enough fuel stocks
‘Dates have the highest sugar content to fight Coronavirus’
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