Sri Lanka in talks with India, China for emergency oil purchases amid Gulf crisis

In a bid to ward off a possible fuel-related crisis due to the widening conflict in the Gulf, the government, through the Ceylon Petroleum Corporation (CPC), is in talks with India and China for oil purchases, an official said.

Oil prices reached almost US $120 a barrel on Monday amid fears that the conflict would cause lengthy disruption to energy supplies from the Middle East, but dropped back to around $93 yesterday.

The price of oil has fallen sharply after U.S. President Donald Trump said that the war involving Iran would come to an end “very soon.”

However, Sri Lanka is bracing for any eventuality in case an emergency occurs.

An official of the CPC told the Daily Mirror that discussions had been initiated with the authorities of both India and China to secure purchases in case of an emergency crisis in the world as far as oil distribution is concerned.

The official said these would be government-to-government purchases.

Asked why the government implemented a non-scheduled price revision, he said it was done for two reasons – to discourage demand amid anticipatory price hikes and to avert a bigger price hike at the next monthly revision.

“If we do not increase the prices now, we will have to increase by a bigger margin next time. Then it will be a shock to people. It will even result in price hikes of other items,” he said.

However, he said the current prices still remain lower than the rates that prevailed before September 2024.

“Logically, there is no need for bus and three-wheeler fare hikes,” he said.

After the eruption of war in the Middle East, Iran, in response to attacks by the United States and Israel, blocked the Strait of Hormuz which is responsible for around 20 percent of global oil supply.

U.S. President Donald Trump has vowed that Iran will be hit 20 times harder if it continues with the blockade. Iran has said it will not open the Strait of Hormuz for trade no matter what.

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Sri Lanka faces billion-dollar economic hit from Middle East conflict, economist warns

Sri Lanka faces a potentially severe economic hit from the Middle East conflict, with a leading economist warning that the country could lose billions of dollars in remittances, export revenue and tourism income if the fighting continues to escalate.

Prof. Priyanga Dunusinghe, head of the Department of Economics at the University of Colombo, said the stakes for Sri Lanka were particularly high given the country’s deep dependence on the region.

More than one million Sri Lankans work in the Middle East, he noted, accounting for around 70 percent of the country’s migrant labour force.

Remittances from the region total approximately USD 3.5 billion dollars annually, roughly half of Sri Lanka’s total remittance income of USD 7-8 billion dollars each year.

“If this Gulf conflict continues, there is a high risk to foreign inflows to the country,” he said.

The export sector faces additional pressure. Between six and eight percent of Sri Lanka’s exports, including tea, rubber and spices destined for markets such as Saudi Arabia and Qatar, are sold to the Middle East.

Prof. Dunusinghe estimated the potential loss to the export sector at around USD 1.4 billion.

Oil prices compound the concern further. Global crude prices crossed USD 100 per barrel on 08 March for the first time since the Russia-Ukraine war, briefly reaching around USD 115 the same day.

He noted that domestic fuel prices could rise from around Rs. 290 rupees to Rs. 370 per litre if the conflict escalates, driving inflation and significantly increasing Sri Lanka’s import bill.

In the most serious scenario, he observed that declining inflows could threaten the country’s ability to maintain adequate foreign reserves, potentially undermining debt repayments and pushing the economy toward instability.

He warned that without an early resolution to the conflict, the consequences for Sri Lanka could be devastating, and urged the government to take measured action on fuel pricing now rather than wait for the full weight of the crisis to arrive.

Sally pointed out Katuwapitiya church to extremists, CID tells court

The CID submitted a brief report into its reasons for arresting former state intelligence chief Suresh Sallay, when the Channel-4 case in connection with the Easter Sunday attacks was taken up for hearing by Colombo Fort magistrate Isuru Nettikumara yesterday (11).

Here, it came to light the first and second suspects, SIS Sergeant Jekyll and police intelligence Inspector Nishantha, had no direct involvement to the attacks, but were found to have intentionally misled the Vavunativu investigations.

The lawyer for the third suspect, the retired major general Sally, then inquired if there was proof of evidence against his client.

The CID alleged Sallay had pointed out, through a long-standing army intelligence operative from Negombo, the Katuwapitiya church as one of the targets of the suicide bombers.

Namal Rajapaksa’s request

Meanwhile, SLPP MP Namal Rajapaksa says the attacks investigation must not be diverted toward political rivalries or geopolitical agendas.

Taking to ‘X’, he stresses that while a fair, transparent, and impartial inquiry is essential to deliver justice to victims and their families, recent developments raise concerns about credibility and objectivity.

He notes that attempts to single out respected military officers such as Sallay, who played a significant role in the fight against terrorism, while overlooking individuals cited for negligence in official reports but later rewarded with government positions, risk undermining public trust in the justice process.

Sallay is a respected military officer who played a significant role in the long struggle to defeat nearly three decades of terrorism, says Rajapaksa.

His service and contribution to national security are highly commendable.

Over the years, however, fabricated public opinions and politically influenced narratives have been circulated attempting to link him to the terror attacks.

At the same time, those responsible for serious lapses and failures in duty have not faced the same level of investigation.

In fact, some individuals cited for negligence in official commission reports but later aligned themselves with the current government are now being rewarded with high positions, while Sallay is being singled out and dragged into an inquiry, charged the MP.

Such a contradiction raises serious concerns and appears to be a clear case of hypocrisy, casting doubt on the credibility of the inquiry itself, he said.

“We are NOT against a fair, transparent, and impartial investigation into the Easter Sunday attacks.”

“We strongly support a credible inquiry and firmly believe that the real conspirators behind this brutal act of terrorism must be identified and punished according to the law,” added MP Rajapaksa.

Meanwhile, NFF leader Wimal Weerawansa alleged an attempt to murder Sallay in a polluted prison cell at the CID.

Weerawansa requested the public to gather in front of the CID headquarters on a coming day to oppose its lowly actions.

Speaking to journalists in Colombo, he cursed that Shani Abeysekara and his boss be struck dead by lightning for the crimes they commit against Sallay.

Sallay was met yesterday afternoon by his lawyer Udaya Gammanpila at the CID.

Later, Gammanpila spoke to journalists.

Source:The leader.lk

‘Lanka e News’ editor handed over to CID

A Sri Lankan news editor arrested on his return from a 16-year exile has been transferred to the Criminal Investigation Department.

Sandaruwan Senadheera, editor of the ‘Lanka e News’ website, was detained at Bandaranaike International Airport yesterday (11) by Katunayake Police.

His arrest is believed to be linked to a court order issued in 2016.

Senadheera had left Sri Lanka during the Rajapaksa administration following threats to his life as well as threats connected to the enforced disappearance of his colleague Prageeth Eknaligoda and an arson attack that gutted the Lanka e News offices.

He is scheduled to be produced before court today (12).

Safety concerns raised

The Free Media Movement has urged the government to guarantee Senadheera’s wellbeing while he remains in custody, noting that his history of facing death threats makes his protection a matter of urgent concern.

“The Free Media Movement believes that his life and personal safety must be ensured even while he is in police custody,” the organisation said in a statement signed by Convener Lasantha de Silva and Secretary Dilisha Abeysundara.

The FMM also called for a fair and transparent legal process, adding that the precise grounds for his arrest had yet to be clarified.

CID Reveals Explosive New Claims Linking Ex‑Intelligence Chief Suresh Salley to Easter Attacks

Former Director of the State Intelligence Service, Retired Major General Suresh Salley, who is currently detained under the Prevention of Terrorism Act, is facing allegations that are directly connected to the Easter Sunday attacks, Colombo Fort Magistrate Isuru Neththikumara stated today.

The Magistrate noted that these matters do not relate to dereliction of duty or any other unrelated issues, but concern direct links to the Easter Sunday bombings.

The Criminal Investigation Department (CID) submitted its progress report on the ongoing investigation into the Easter attacks before the Colombo Fort Magistrate’s Court today.

The Criminal Investigation Department (CID) today reported to court several findings revealing alleged links between former State Intelligence Chief Suresh Salley and the Easter Sunday terror attacks.

According to the CID, investigations have uncovered that Salley was directly involved in gathering information for Saharan’s group ahead of the attack on the Katuwapitiya church, using one of his informants for this purpose.

Investigation Officer’s statement (excerpt):

“This intelligence unit also maintained another informant in the Panadura area. He had provided advance warning that the attack would take place. On the day of the attack, when questioned, he told officers that an Army officer with at least 20 years of experience was behind the attack. Senior Army officers questioned him extensively over the phone, and on 26 April 2019, this informant was taken into custody by Military Intelligence and later handed over to the Terrorism Investigation Division (TID). Afterward, his household needs were handled by Military Intelligence, and arrangements were made to provide a job for his son in the Army Intelligence IT division.” End of excerpt.

The Fort Magistrate noted that while intelligence officers are legally permitted to maintain informants, the concern arises from allegations that such support continued even after the informant became a suspect.

When questioned, CID officers confirmed that the suspect continued to be maintained thereafter, explaining how Suresh Salley was allegedly connected to this process.

Investigation officer’s statement (excerpt):

“All of this took place under the guidance of the suspect. After this suspect was released on the advice of the Attorney General, he was handed to TID officers, taken to the Galadari Hotel, thanked, and told to step away from this work.” End of excerpt.

The Magistrate then asked why he was thanked.

Investigation officer’s statement (excerpt): “He was assigned to the TID for questioning. An intelligence officer was sent to obtain details from him on how the investigations were being conducted, how CID should proceed, how TID was working, and how foreign arrivals were doing the questioning.” End of excerpt.

Meanwhile, the CID also revealed that Salley had allegedly interfered in the process of confirming the death of Pulastini Rajendran, also known as Sarah Jasmine, who was linked to the Easter attacks.

Investigation officer’s statement (excerpt):

“Following the 26 April 2019 Sainthamaruthu explosion, a woman named Sarah Jasmine was believed to have died, but her body was never recovered. A DNA report confirming her death was found only on the third attempt. Investigators faced various pressures from the suspect during this third test.” End of excerpt.

The CID further told the court that former IGP C.D. Wickramaratne and former CID Director Nishantha Soysa have already provided testimony on these alleged interferences, stating that Salley repeatedly influenced officials through the National Security Council.

The Magistrate questioned how an intelligence officer could summon a police chief to the Security Council. CID officers responded that only the President could convene such meetings, with sessions conducted based on presentations made by the Director of State Intelligence.

Investigation officer’s statement (excerpt): “Former CID officer Prasad Ranasinghe has stated that after failing to carry out continued instructions under pressure from Suresh Salley, he was brought before the National Security Council and pressured through the President. He later suffered a heart attack due to this stress.” End of excerpt.

Representing Suresh Salley, President’s Counsel Anuja Premaratne addressed the court.

President’s Counsel Anuja Premaratne – Statement (excerpt): “This bombing took place in 2019. Bringing up Katuwapitiya again adds nothing useful. In 2019, this third suspect was not even in Sri Lanka, he was in Malaysia. The claim that the suspect exerted pressure refers to DIGs in the Police and even the IGP. Were these officers operating with or without coats at the time? It is shameful, this narrative being presented. They say they were summoned before the Security Council and reprimanded. SIS functions under the IGP. And besides, how can an Army intelligence officer speak before the Security Council? The Council is convened only by the President. During the 2019 Easter attacks, no Security Council was convened. All of this was revealed before the panel of seven Supreme Court judges.” End of excerpt.

The Magistrate then questioned CID officers regarding the type of pressure allegedly exerted by the President at that time.

Investigation Officer’s statement (excerpt):

“The pressure involved instructing us to exhume bodies in Ampara for a third time and obtain DNA samples. The suspect repeatedly raised this during intelligence review meetings. When it was not carried out, the matter was taken to the Security Council, where the President was told that CID officers were deliberately avoiding this test.” End of excerpt.

Meanwhile, President’s Counsel Anuja Premaratne informed the court that lawyers had encountered various obstacles when attempting to meet Suresh Salley, who is detained under the Prevention of Terrorism Act (PTA).

After considering all submissions, the Fort Magistrate ordered the case to be recalled on the 25th.

Fort Magistrate’s Statement (excerpt):

“The matters presented in relation to the third suspect point to issues directly connected to the Easter attacks, not residual matters such as dereliction of duty. Therefore, it appears that the earlier order has been carried out to some extent. Whether the evidence is sufficient must be determined based on today’s consolidated evidence report and future investigations. The court observes that the order has been implemented. These evidentiary matters will be considered at the appropriate stage. Out of the three matters raised regarding the third suspect, one relates to the Security Council. It must be examined whether such an order, if given by the President, falls within powers constitutionally vested in the President through the Security Council. If it does, it cannot be treated as a criminal act. Criminal liability arises only where there is an intention to obstruct investigations. Merely issuing advice regarding investigative steps does not in itself impose criminal liability. Further inquiry is required. It must be determined whether actions occurring at the Security Council amount to an offence and, if so, who bears responsibility. These findings are to be reported to court. If any application is to be made regarding the third suspect, it must be submitted in writing based on previous appellate orders. These will then be considered. Additionally, when reviewing matters under the Prevention of Terrorism Act, the court will issue necessary orders within constitutional limits. This has been personally reviewed. Should anything further be required, it must be submitted in writing.” End of excerpt.

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Sri Lanka better positioned to withstand oil price shocks : CB Governor

The Governor of the Central Bank of Sri Lanka, Dr. Nandalal Weerasinghe has assured the public that Sri Lanka is now in a “much better position” to withstand global economic shocks, including rising oil prices and geopolitical tensions in the Middle East.

Speaking in an interview with Bloomberg recently, the Governor highlighted that the nation has built significant financial buffers, including foreign reserves that have surged from near-zero levels to over $7 billion.

This provides a critical safety net against the rising oil prices and supply chain disruptions currently triggered by Middle East tensions.

The Governor emphasized that the domestic inflation environment has transformed, dropping from a crisis peak of 70% to a current rate of 1.6%.

This low inflation gives the Central Bank “significant space” to absorb external price shocks without destabilizing the local economy.

Unlike the previous crisis, where fuel shortages were caused by a total lack of foreign exchange, Dr. Weerasinghe clarified that any current risks are related to global supply logistics rather than a lack of domestic funding.

He noted that the exchange rate will be allowed to act as a shock absorber to manage demand and protect the country’s fiscal health.

Addressing the ongoing program with the International Monetary Fund (IMF), Dr. Weerasinghe confirmed that while the December review was delayed due to the impact of recent cyclones and climate change, negotiations are set to resume around March 15.

The government is aiming for IMF Executive Board approval by May 2026 to secure the next disbursement. He noted that the IMF program remains a “key pillar” of stability, and there is enough flexibility within the agreement to adjust targets based on the current global outlook and the domestic impact of natural disasters.

Despite the challenges, the Governor remains optimistic about national growth, projecting a GDP increase of nearly 5% for the year—outperforming initial IMF estimates of 2%.

His primary concern remains the duration of the conflict in the Middle East; should the disruption exceed four to five weeks, the impact on global trade routes and supply chains could become a broader burden.

For now, however, the Governor maintains that Sri Lanka has the monetary and fiscal buffers necessary to ensure that the economic recovery remains orderly and manageable.

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PC Polls Under a New Electoral System, Says Minister

Minister of State Administration, Provincial Councils and Local Government, Chandana Abeyratne, says that Provincial Council elections will be held as soon as a consensus is reached on a new electoral framework.

The Minister made these remarks following a ceremony held in Kandy.

According to the minister, the provincial council elections were postponed during the previous administration about seven years ago and emphasized that the current government has not conducted Provinical Council elections as the current administration has identified the requirement of a new electoral system and stated that discussions are underway on this.

Accordingly, a committee has been appointed to decide on how to implement a new electoral system.

Minister Abeyratne emphasized that once the committee concludes its work and an agreement is reached, the government is committed to conducting the elections without further delay.

Washington indicates ‘final decision’ on Iranian crew rests with Colombo

The United States has said it respects Sri Lanka’s sovereignty in deciding how to handle Iranian sailors rescued after the sinking of a warship off the island’s southern coast.

The statement from the US State Department follows reports that Washington had been privately leaning on Colombo to block the repatriation of the crew members, who were brought ashore after a week of high-seas drama that saw the first U.S. submarine torpedo attack since the Second World War.

Addressing the Raisina Dialogue in New Delhi on Saturday, Foreign Minister Vijitha Herath said that 32 sailors rescued from the sunken frigate IRIS Dena are being cared for under international treaty obligations.

When asked directly if the United States was pressuring the government to detain the men, Herath declined to answer directly, stating instead that Colombo had “taken all the steps according to international laws.”

The diplomatic standoff began on Wednesday when the IRIS Dena was struck by a US torpedo 19 nautical miles off the coast of Galle.

Sri Lankan naval teams recovered 84 bodies and rescued 32 survivors from the wreckage.

Just 24 hours later, a second Iranian warship, the IRIS Bushehr, was granted safe haven in the northeastern port of Trincomalee after reporting engine failure, resulting in the evacuation of 219 more crew members.

In a televised address earlier this week, President Anura Kumara Dissanayake clarified that the government would adhere to the Hague Convention.

Under these international laws, a neutral state is required to hold combatants from a warring state until hostilities have ceased.

While US officials had reportedly expressed concerns that Iran would use the returning sailors for propaganda purposes, the public stance from Washington has shifted toward recognition of Sri Lanka’s legal autonomy.

“The United States of course respects and recognizes Sri Lanka’s sovereignty in the handling of this situation,” a State Department spokesperson told AFP, adding that the final decision rests solely with Colombo.

The regional impact of the conflict has also touched India, where the IRIS Lavan, a third vessel from the same fleet, was permitted to dock in Kochi on Saturday.

Indian External Affairs Minister S Jaishankar defended the move on “humane grounds,” noting that many of those on board were young cadets caught on the “wrong side of events.”

The three Iranian vessels had originally been in the region for a multi-national fleet review hosted by India, which concluded shortly before full-scale hostilities broke out in the Middle East last week.

In Colombo, senior administration officials confirmed they are now in talks with the International Committee of the Red Cross (ICRC) to manage the survivors, while Iranian diplomats continue to press for the return of the remains of the 84 sailors killed in the initial strike.

Source:Lankaleader.lk

Explosion, injuries and drowning killed Iranian sailors, autopsies reveal

Post-mortem examinations conducted on the bodies of 84 Iranian sailors recovered from a sunken vessel have revealed that they died from fractures caused by an explosion, internal injuries and drowning, officials said on Friday (6).

The sailors had been aboard the Iranian warship IRIS Dena, which sank following a torpedo attack by a United States submarine.

Their bodies were brought to the Galle National Hospital by the Sri Lanka Navy, where a team of specialist judicial medical officers carried out the examinations.

The autopsies were conducted by Professor U.C.P. Perera, Ajitha Ranaweera, and Janaki Varushaheddeni together with 12 other forensic medical officers.

The examinations continued until 5 a.m. on Friday, with the forensic team divided into three groups in order to examine three bodies simultaneously.

Following the post-mortem examinations, the remains were placed in two designated cold storage facilities.

According to the findings, the sailors had died from blast-related fractures, internal trauma and drowning.

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Iranian sailors: No demands made by US, says MOD

The Ministry of Defence yesterday (7) rejected foreign media reports which claimed that the United States had pressured Sri Lanka not to return rescued Iranian sailors to Tehran following recent maritime incidents in the Indian Ocean.

“There is no truth to the claims that the US Government or the US Embassy have applied pressure on Sri Lanka to refrain from returning the sailors to Iran and no such dialogue has taken place,” Deputy Minister of Defence Major General (Retd) Aruna Jayasekara said, adding that there had been no conversation regarding the matter thus far.

He stated that no one had spoken on behalf of the US Government or the embassy regarding this matter, adding that it appeared that certain media outlets were spreading the news, but there had been no such information, dialogue, or conversation on the issue.

Jayasekara also confirmed that the rescued sailors were currently being accommodated at secure locations under Sri Lankan custody while administrative and diplomatic processes continued.

“The 32 Iranian sailors rescued from the first vessel have been relocated to a secure location in Galle at the Boossa cantonment, while the 204 sailors from the second vessel are being kept under Sri Lankan custody in Welisara,” Jayasekara said.

He noted that Sri Lanka had to carefully balance its international relationships while addressing the situation.

“Sri Lanka maintains long-standing relations with Iran, but we also need to maintain relations with the US and Israel, particularly because many Sri Lankan expatriate workers are employed in Israel,” he said.

The comments come after reports suggested that Washington had sought to prevent the return of the sailors amid concerns that Iran could use the incident for political messaging.

Sri Lanka, however, has maintained that its actions have been guided strictly by humanitarian obligations and international law.

Ministry of Foreign Affairs Spokesperson Thushara Rodrigo said that decisions relating to the sailors and related diplomatic matters would be handled in accordance with established international frameworks.

“Respective international law and diplomatic norms will guide the enforcement,” Rodrigo said.

He also cautioned against the political exploitation of those involved in the maritime incidents: “Using the victims for publicity or propaganda will only further complicate the situation. Our objective is to help de-escalate tensions, not inflame them.”

Rodrigo reiterated Sri Lanka’s broader diplomatic position amid the ongoing geopolitical tensions, noting: “Sri Lanka is a neutral country in the international political landscape and we believe in diplomatic engagement for a peaceful resolution.”