The Government of Iran agreed to provide no interest credit terms (four months) for petroleum purchases (approximately US$ 700 million). Iran will finance the Uma Oya Project (US$ 450 million) and also finance the expansion of the Sapugaskanda refinery (US$ 750 million).At a bilateral meeting between the two Presidents a number of issues of bilateral, regional and international importance were discussed.
On the economic sphere the two sides signed MoUs pertaining to the construction of the Uma Oya Multipurpose Development Project, the Expansion of the Sapugaskanda Oil Refinery, Cooperation in Maritime Shipping, Agreement on Customs Cooperation and a MoU on Media Cooperation.
Recognizing the importance attached to private sector led development in Sri Lanka, the Federation of Chambers of Commerce and Industry and the National Chamber of Commerce signed MoUs with the Iran Chambers of Commerce Industry and Mines.
Both Iran and Sri Lanka emphasized the rights of the NPT member states to research, develop and use nuclear energy for peaceful purposes. The two sides agreed that the IAEA is the sole authority to verify the legal and technical issues related to IAEA safeguard and the compliance of states under the obligations of the NPT.
A Sri Lanka Investment Forum was held with a view to attracting Iranian Foreign Direct Investment to Sri Lanka. This event was well attended by leading Iranian businessmen who evinced a great interest on investment possibilities in the island.
A number of Sri Lankan businessmen who were in Tehran during the visit of the President were provided with an opportunity to have one to one meetings with local businessmen.
Meanwhile, Sri Lanka and Iran entered into a Memorandum of Understanding (MoU) on the provision of crude oil on credit for four months and a further grace period of three months sans any interest payment.According to the Minister of Petroleum and Petroleum Resources Development, Hon. A.H.M. Fowzie, the MoU was the successful outcome of discussions held recently between the two Presidents of Sri Lanka and Iran.
Under the MoU, the refined output of the Sapugaskanda Oil Refinery which is around 50,000 barrels per day is to be enhanced to around 100,000 barrels with the financial assistance from Iran.
Approximately, US $ 700 million loan will be provided by the Iranian Government for this project following a feasibility test. The loan should be paid back within 10 years.
 President undertook a State Visit to Iran at the invitation of Iranian President from 26th to 2...){kind=link}
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