Iran, Sri Lanka Underline Expansion of Ties

TEHRAN (FNA)- Iranian Deputy Foreign Minister Mohammad Ali Fathollahi met with Sri Lankan President Mahinda Rajapaksa and discussed expansion of ties and cooperation between the two Asian states.
At the meeting, the two sides underlined the need for the further expansion of ties and cooperation between Iran and Sri Lanka.

Fathollahi also delivered a message from Iranian President Mahmoud Ahmadinejad to Rajapaksa during the meeting.

The Iranian deputy foreign minister later met with several ministers of the South Asian country, including External Affairs Minister G.L. Peiris and Economic Development Minister Basil Rajapaksa.

At the meetings, the two sides called for setting up a second political consultative committee and to hold a meeting of the 10th conference of joint economic commission soon.

Last month, a Sri Lankan Petroleum Ministry official said his country was in contact with Iran about funds for the expansion of the Sapugaskanda oil refinery.

"The Iranian government has pledged to finance 70 per cent of the total costs of expanding the refinery while the balance will be taken care of by Sri Lanka," Ministry Secretary Titus Jayawardana said.

He said the project was estimated to cost US$1,500 million and the government was now looking for the investors to bear the balance costs of 30 per cent.

Jayawardana said when the project is completed, Sapugaskanda oil refinery would be able to refine 100,000 barrels of crude oil a day.

He added that the present capacity stood at 50,000 barrels.