Oct 20, 2019

Tea for oil trade between Iran and Sri Lanka

It has been reported that Iran has requested the immediate settlement of oil import debts which amounts to  USD 225,925,169.
The debt on the crude oil which were obtained on credit in 2013 has not been settled in the recent past.

The Ministry of Finance has proposed to settled the debt by providing Ceylon Tea against the oil import debts.

The settlement of the debt  in total will be made over a two year period at USD 5 million monthly.

This would mean that Ceylon Tea worth $5 million would be sold to Iran by local tea exporters and the payment would be settled by the Ceylon Petroleum Corporation to the exporters.