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Iranian Central Bank Governor takes up outstanding payments with Gammanpila

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Ambassador Wishwanath presents the Letters of Credence to the President of the Islamic Republic of Iran Ayatollah Sayyid Ebrahim Raisi (Pic courtesy Foreign Ministry)

New Lankan Ambassador in Tehran

By Shamindra Ferdinando

Sri Lanka owes Iran USD 251 mn for crude oil purchased way back during Mahinda Rajapaksa’s presidency. In spite of talks between the two countries over the years, they haven’t been able to settle the issue over the outstanding debt.

Energy Minister Udaya Gammanpila confirmed outstanding payment when The Island raised the issue with him on his return from Iran following a four-day visit, commencing Sept. 24.

Asked whether Iran wants interest on the delayed payment, Minister Gammanpila said that was not so.

Minister Gammanpila led a delegation to Iran at the invitation of the Minister of Petroleum of Iran Dr. Javad Owji. The delegation held talks with Iranian officials, including the Governor of the Central Bank of Iran Dr. Akbar Komijani.

The Foreign Ministry said that Minister Gammanpila discussed modalities to establish a mechanism for the settlement of outstanding payments with Dr. Akbar Komijani. The Sri Lankan delegation also met Deputy Foreign Minister for Economic Diplomacy of Iran Mahdi Safari.

During the meeting, the two sides underscored the importance of convening the Joint Commission for Economic Cooperation (JCEC) between the two countries at a mutually convenient date.

Minister Gammanpila also discussed ways and means of boosting relations in the fields of trade, investment, energy and tourism between Sri Lanka and Turkmenistan with the latter’s Teheran-based Ambassador Gurbanov Ahmet Kakabayevich.

The Iranian Petroleum Ministry arranged site visits to the Tehran Oil Refinery and Gas Station Museum. The newly appointed Sri Lankan Ambassador in Teheran G.M.V. Wishwanath Aponsu joined the delegation in discussions with Iranian officials. The delegation included Energy Secretary K.D.R. Olga and Deputy General Manager of Ceylon Petroleum Corporation Mahendra Gurusinghe.

Wishwanath Aponsu presented the Letters of Credence to the President of the Islamic Republic of Iran Ayatollah Sayyid Ebrahim Raisi at the Sadabad Complex, Office of the President, in Tehran on 26 September 2021 during Minister Gammanpila’s visit.

The Sri Lankan Foreign Ministry quoted the Iranian President as having appreciated the longstanding and historical ties with Sri Lanka and their readiness to activate all capacities for development of relations between the two countries. While appreciating a close cooperation and mutual support at multilateral fora, he underscored the importance of the JCEC between Sri Lanka and Iran for promoting bilateral relations.

Ambassador Aponsu has reiterated Sri Lanka’s commitment to strengthen existing bilateral engagement with Iran into a multifaceted and results-oriented partnership. He further placed particular emphasis on the trade in agriculture products, energy, culture and tourism, as areas that could be explored and enhanced for developing the level of bilateral relations.

The President also stated that there is potential for the development of trade relations and transfer of experience, especially in the technical and engineering fields between the two countries. In response, the Ambassador expressed that all proposals and outstanding matters could be discussed at the next JCEC meeting between the two countries.

Prior to the current assignment, Ambassador Wishwanath Aponsu served as first Director General of Overseas Sri Lankan Division and Director General of Consular Affairs at the Foreign Ministry in Colombo.

He is a career diplomat (Sri Lanka Foreign Service-Grade I) with 19 years of service, having served as High Commissioner (Actg.) at the Sri Lanka’s Mission in Singapore and held positions at the Missions in India, Saudi Arabia and Bangladesh.



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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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