News

Sri Lanka hopeful of starting tea-for-oil barter with Iran in July

Published

2 years ago

June 24, 2023

editor

Sri Lanka is reportedly set to start bartering tea to Iran next month in lieu of USD250 million owed for oil, as the country tries to lift sales to a key market and protect the forex reserves.

The barter was agreed in 2021 for oil imported in 2012, but the exchange was delayed after Sri Lanka’s unprecedented dollar shortage last year plunged the economy into its worst financial crisis in more than seven decades.

Speaking to the Reuters News Agency, Sri Lanka Tea Board Chairman Niraj de Mel has said the programme is a timely initiative as the country will get access to an important market and both Iran and Sri Lanka can trade without relying on dollars.

Chairman Niraj de Mel has said the agreement was to send USD5 million worth of tea each month for 48 months but initially it will be around USD 2 million per month.

Globally popular Ceylon Tea is Sri Lanka’s highest foreign exchange-earning crop, brewing USD 1.25 billion for the country last year, according to government data.

Iran has been one of Sri Lanka’s main tea buyers but exports have fallen steadily from USD 128 million in 2018 to USD 70 million last year as U.S. sanctions on Iran hit trade.

A significant share of Sri Lanka’s tea is now shipped to Iran via the United Arab Emirates (UAE), official data shows, with the UAE more than doubling its tea imports from Sri Lanka to USD 118 million last year from USD 48 million five years ago.

Under the barter programme, the Ceylon Petroleum Corporation that bought the oil will give rupees to the Tea Board to ship tea via Sri Lankan exporters.

Iranian tea importers will then pay riyals to the National Iranian Oil Company.

Chairman de Mel added that, “We are awaiting the final documents and hope to start exports from July.”

Sri Lanka’s foreign exchange reserves grew to USD 3.5 billion at the end of May – a 14-month high – helped by increased remittances and tourism inflows after securing a USD 2.9 billion bailout from the International Monetary Fund.

Source: Reuters

News

Court summons ex-AGM of People’s bank over major fraud

Published

53 minutes ago

July 3, 2025

editor

The Attorney General has filed a case against one Vithanage Don Dayananda, a former Assistant General Manager (AGM) at People’s Bank head office, for allegedly preparing and using a forged document related to a Rs.2,000 million personal guarantee bond.

Colombo High Court Judge Lanka Jayaratne has fixed the case (HC 39/2019) for trial on October 30. When the case was called on July 01, the accused had appeared in court.

It is alleged that around June 01, 2006, in Colombo, the accused knowingly prepared a forged document purporting to show that a personal guarantee bond, allegedly signed and dated July 27, 1995, by directors of Yashoda Holdings (Pvt) Ltd.had been submitted to the bank’s head office.

Despite being well aware that the document was a forged one, he had allegedly presented it as genuine evidence during the Commercial High Court Case No. 122/2004.

Therefore, the Attorney General has charged him under Section 459 of the Penal Code.

Related News :

Court orders CID to probe Rs.90 mn. fraud at People’s Bank

News

2nd round of Grade 06 admission appeals open online today

Published

1 hour ago

July 3, 2025

editor

The Ministry of Education has announced that online appeals for the second round of Grade 06 admissions in 2025, based on the 2024 Grade 05 Scholarship Examination results, can be submitted from today (July 03) until July 17.

Parents or guardians can submit appeals for up to three schools by visiting the official website of the Ministry of Education at www.moe.gov.lk or directly via the extension at g6application.moe.gov.lk.

News

Several showers expected today

Published

2 hours ago

July 3, 2025

editor

Several spells of showers will occur in the Western, Sabaragamuwa and North-western provinces and in Nuwara-Eliya, Kandy, Galle and Matara districts today (July 03), the Department of Meteorology said.

Showers or thundershowers may occur at a few places in the Uva province and in Ampara and Batticaloa districts during the afternoon or night.

Meanwhile, fairly strong winds of about 30-40 kmph can be expected at times over Western slopes of the central hills and in Northern, North-central and North-western provinces and in Trincomalee and Hambantota districts.

The general public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.