Iran to continue funding projects underway in Sri Lanka, look for new contracts

Saturday, 28 February 2015 00:42 - - {{hitsCtrl.values.hits}}

Teheran: Iran will see to the completion of projects that are underway in Sri Lanka with Iranian funds, a senior Iranian Government official said. Iranian Deputy Foreign Minister Morteza Sarmadi has announced Tehran’s readiness for completion of projects that are underway as well as inking new contracts and implementing different ventures in Sri Lanka.

Sarmadi has made these remarks when Sri Lanka’s outgoing Ambassador to Tehran Mohammad Feisal Razin met him on Wednesday, FARS news agency reported. During the meeting, Iranian Deputy Foreign Minister appreciated the efforts the Sri Lankan Ambassador made during his tenure to promote bilateral ties. Razin, for his part, has presented a report about his activities during his three-year tenure in Tehran. Currently, two Iranian companies are working on two important projects of dam construction and rural electricity in Sri Lanka. However, the new Sri Lankan Government recently decided to temporarily suspend the Iran-funded Uma Oya multi-purpose development project due to its adverse environmental impact. The project at an estimated cost of $ 529 million was launched by the previous government in 2012 with a $ 450 million loan from Iran. The five-year project was to be constructed by the Hardish Engineering Company of Iran. Sri Lanka in 2009 signed a $ 106 million agreement with an Iranian firm to provide electricity to roughly 1,000 villages in Sri Lanka. The Iranian Minister expressed hope that by settling the problems, the ground will be prepared for expansion of economic cooperation and completion and implementation of projects in Sri Lanka. In January, Iranian President Hassan Rouhani in a congratulatory message to President Maithripala Sirisena said that Tehran hopes to expand the bilateral ties with Sri Lanka “more than ever before”.