Iranian President Mahmoud Ahmadinejad launched a project to boost the capacity of Sri Lanka's main oil refinery on Tuesday, part of a $1.5 billion loan to the government as Iran extends its energy ties in South Asia. Ahmadinejad's visit came as President Mahinda Rajapaksa, seeks closer ties with Asian countries. Ahmadinejad, who visited Pakistan on Monday to seal a $7.6 billion pipeline deal, will travel later on Tuesday to India, which is also interested in the pipeline to feed its booming economy. "We are seeking justice and fair play in the world and Sri Lanka and Iran have agreed to cooperate in all spheres for the mutual benefit of each other," Ahmadinejad told reporters late on Monday on his arrival in Sri Lanka. Iran had pledged a $1.5 billion loan to fund a raft of infrastructure projects in Sri Lanka, including boosting oil refinery capacity and a 100 megawatt hydropower project, Reuters reported.
