Iran which granted USD 450 million to build the Uma Oya hydro power project and upgrade the Sapugaskanda oil refinery has emerged as Sri Lanka 's biggest donor this year.

In the five months to May this year, Sri Lanka received USD 1.05 billion in foreign aid, of which project loans accounted for 959 million and grants for 90 million, the treasury said in its mid-year fiscal report.

Other key donors include Denmark (USD 155.2 million), India (USD 109.2 million), the Asian Development Bank (USD 90 million), World Bank (USD 43.1 million) and Japan (USD 42.2 million).