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China, Lanka in upbeat mood

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Colombo seeks Beijing’s help to boost foreign investment

China and Sri Lanka yesterday (28) reiterated their commitment to building stronger relations between the two nations, during separate talks the visiting Chinese State Councillor and Defence Minister General Wei Fenghe had with President Gotabaya Rajapaksa and Prime Minister Mahinda Rajapaksa. 

A brief communique issued by the President’s Media Division quoted General Fenghe as having said that bilateral discussions with President Gotabaya Rajapaksa were extremely fruitful and the relations were further strengthened by the visit.

Chinese Ambassador in Colombo Qi Zhenhong, Deputy Chief of staff of Joint Staff Department under the China’s Central Military Commission Lieutenant General Shao Yuanming, Major General Ci Guowei and Secretary to the President P.B. Jayasundera participated in the discussion.

A top-level delegation led by the Chinese Defence Minister arrived at the Bandaranaike International Airport (BIA) on Tuesday night (27). Defence Secretary Gen (retd.) Kamal Gunaratne, Army Commander Gen. Shavendra Silva, Navy Commander Vice Admiral Nishantha Ulugetenne and Air Force Chief of Staff Air Vice Marshal Prasanna Payoe welcomed the delegation. Ambassador Qi Zhenhong, too, was there to welcome the delegation.

At the onset of talks with General Fenghe, Premier Mahinda Rajapaksa appreciated China going ahead with the visit in spite of the fresh Covid-19 eruption. Having thanked China for donating 600,000 doses of Sinopharm vaccine and Personal Protective Equipment, PM Rajapaksa assured that in spite of the increase in COVID-19 cases in recent weeks, the Government wouldn’t declare countrywide lockdowns due to the impact such lockdowns would have on the economy and society.  

The Prime Minister’s Office quoted the PM as having told General Fenghe: “I’m sure you’ll agree that there is still a lot that needs to be done for post-pandemic economic recovery. One of our main priorities in this effort is to attract investments from around the world. I look forward to your support in rebuilding investor confidence in Sri Lanka.” 

Among those ministers present were Foreign Minister Dinesh Gunawardena and Education Minister Prof. G.L. Peiris. 

Both statements issued by the President’s Office and the Prime Minister’s didn’t make reference to the biggest China funded project in Sri Lanka, Colombo Port City. 

The Supreme Court over a period of five days beginning April 19 heard 19 petitions filed against the Colombo Port City Economic Commission Bill. The SC is expected to inform the President and the Speaker of its ruling soon, as per constitutional requirements. 

General Fenghe’s visit follows high level talks senior Chinese leader and top foreign policy official Yang Jiechi had in Colombo in the third week of October 2020. Jiechi was followed by then US Secretary of State Mike Pompeo who asked Sri Lanka to decide whether it wanted to continue relationship with China as if in an ultimatum. (SF)



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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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