Jul 22, 2018, 7:13 PM

Sri Lanka proposes to offset tea-oil deal with Iran against oil debts

TEHRAN, Jul. 22 (MNA) – The Sri Lanka Tea Board has proposed that the payments due from Iran for tea purchases from Sri Lanka be offset against the $250 million that the Ceylon Petroleum Corporation (CPC) owes to Tehran for oil.

According to Sunday Times, the proposal was made to the Central Bank in the wake of fresh regulations Sri Lanka’s Foreign Ministry has issued in compliance with United Nations Security Council Resolution 1737 of 2006 and 2231 of 2015.

Tea Board Chairman Lucille Wijewardena said the board had made the proposal as under the UN sanctions, there were restrictions on financial transactions with Iran. “If the CPC pays us, we can continue the export of tea to Iran as there is no ban on this commodity. The amount the CPC owes Iran can offset payment for a year of tea export to Iran,” he said.

Iran is Sri Lanka’s fourth largest tea buyer. In 2016, Sri Lanka exported 33,929 metric tons of tea to Iran but the volume fell to 27,419 in 2017.

MA/PR

News ID 135969