Sri Lanka & Iran discuss mutual cooperation, mull for early 2012 JEC meet

Sri Lanka and Iran are keenly exploring the possibility of holding the next session of bilateral Joint Economic Commission meeting in Tehran in early 2012. Both countries have expressed their interest to this end when the Iranian Vice Minister of Foreign Affairs Seyyed Amir Mansour Borghai took part in a special dinner meeting at the Cinnamon Grand, Colombo on Thursday, 28 July hosted by Rishad Bathiudeen, Minister of Industry & Commerce of Sri Lanka.    

Iranian Vice Minister Mansour Borghai arrived in Colombo to inaugurate the Kattankudy Housing Project gifted by the Government of Iran.

During the official dinner meeting, both Ministers stressed of the need for strengthening mutual cooperation further and keenly exchanged opinions and explored the possibility of holding the next session of Sri Lanka – Iran Joint Economic Cooperation (JEC) meeting in Tehran in early 2012.

Welcoming the Iranian delegation, Minister Bathiudeen stated that both countries were enjoying long standing close and friendly relations. “I am also most thankful for the warm and generous hospitality extended to me in Iran when I visited the Islamic Republic of Iran in mid-May this year. Sri Lanka is also thankful for development assistance from Iran. The assistance from Iran is also a major factor in strengthening our historical relations with the Islamic Republic of Iran. I also wish to extend my gratitude to the Imam Khomeini Relief Foundation of Iran for extending relief and rehabilitation assistance for the displaced populace in Sri Lanka” Minister Bathiudeen reiterated.

Minister Bathiudeen also conveyed Sri Lanka’s gratitude to the Islamic Republic of Iran for the mega financial support of extending an interest free credit facility for the purchase of Iranian crude oil. The special financial facility that came into operation in January 2008 followed President Mahinda Rajapaksa’s meeting with Iranian President Dr. Mahmoud Ahmadinejad in Teheran in November 2007. Iran agreed to provide a credit facility for crude oil starting January 2008 during President Mahinda Rajapaksa’s visit. The facility was extended again in September 2009 for another one year. Under this facility, in 2008, Sri Lanka imported US $1.05 billion of crude oil from Iran.

Both sides also discussed the possibility of regularising exports of pure Ceylon Tea to the Iranian market.

Stressing on Sri Lanka’s post war economic resurgence and importance to Iranian business community, Minister Bathiudeen said: “Sri Lanka’s current 8% economic growth is forecast to increase to 9% in 2012 and 2013. Our per capita income is expected to double up to US $ 4,000 by 2015. And there are promising investment opportunities for Iranian international investors seeking growth in our infrastructure including highways, commercial property and urban housing apartments, value addition, tourism, and tea in value added form. I invite the Iranian business community to come to Sri Lanka and explore them.”