News
Lanka, US in diplomatic row over Iran oil
View(s):Govt. denies charges by Washington, says no crude from that country
Sri Lanka and the United States are embroiled in a diplomatic row after Washington accused Colombo of violating US sanctions on Iran. The issue was raised at last Tuesday’s Cabinet meeting by Economic Development Minister Basil Rajapaksa. He said the US had communicated it to the Government.
President Rajapaksa, who chaired the meeting, was to remark that small countries like Sri Lanka were being picked for such accusations. However, he named at least two other leading countries in the Asian region and said “there was nothing if they were to engage in it.”
President Rajapaksa directed acting spokesperson Anura Priyadarshana Yapa, who is also Minister of Petroleum Resources, to publicly deny the accusations. He did so but did not name the United States. Mr. Yapa told a news conference on Wednesday that no crude oil had been imported from Iran since 2012. He, however, did not make any reference to the US protest and the resultant discussion at the Cabinet. Instead, Mr. Yapa was denying what was claimed to be allegations made by the main opposition United National Party (UNP).
Mr. Yapa said that 20 per cent of Sri Lanka’s requirement of crude oil was imported from Iran in the first half of last year. Thereafter, ten per cent more of the country’s requirements were brought down in the latter half. Since then, there had been no crude oil imports from Iran.
The latest Colombo-Washington row over Iran sanctions busting comes amidst another tussle. The Government has taken strong exception to the United States embassy in Colombo working out an arrangement to set up an American Activity and Information Centre in collaboration with the Trincomalee Urban Council. The External Affairs Ministry has charged that it had been worked out without its prior consent.
In recent years, the US Congress has dramatically expanded the range of activities subject to sanctions, going beyond investments in Iranian petroleum and gas production to include purchases of Iranian crude oil and almost all financial transactions. This encompasses banking and insurance transactions (including with the Central Bank of Iran), shipping, web-hosting services for commercial endeavours and domain name registration services.
Congress has also increased the penalties that can be imposed on offending entities, such as cutting them off from the US financial system. Secondary sanctions against corporations have reduced the willingness of companies and banks in many countries to do business with Iran.
There was no immediate response from the US embassy in Colombo.
Follow @timesonlinelk
comments powered by Disqus