Sri Lanka partially repays Iranian oil USD 20 million worth of tea
26-Feb-2024Sri Lanka said on 21 Feb it had exported tea worth USD 20 million to Iran to partially repay its USD 251 million oil debts
Sri Lanka said on 21 Feb it had exported tea worth USD 20 million to Iran to partially repay its USD 251 million oil debts, with Colombo saying Tehran’s visiting foreign minister had expressed satisfaction at the deal.
“So far USD20 million worth of tea has been exported to Iran under the barter trade agreement,” Sri Lankan Prime Minister Dinesh Gunawardena’s office said in a statement after talks with Iranian Foreign Minister Hossein Amir-Abdollahian.
The tea-for-oil deal was agreed upon in December 2021, but exports were delayed by Colombo’s economic crisis that forced then-president Gotabaya Rajapaksa to step down in July 2022.
The barter deal allows sanctions-hit Iran to avoid having to use up scarce hard currency to pay for imports of popular tea. It also allowed Sri Lanka to pay with tea, as the country was short of foreign currency.
