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Sri Lanka plans to settle Iranian oil debt with tea
Thu, 23 Dec 21, 10:27
Post: #1
Sri Lanka plans to settle Iranian oil debt with tea
[Image: tea_1.jpg]


Ramesh Pathirana said his country hopes to send $5 million (3.8 million pounds) of tea to Iran each month to settle $251 million in debt.Sri Lanka is experiencing severe debt and a foreign exchange crisis. This was made worse by the loss of tourist revenue during the coronavirus pandemic.

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Members of the country's tea committee said it was the first time tea was exchanged for foreign settlements.Mr Pathirana said the payment method would not violate UN sanctions or American sanctions. Because tea is classified as a humanitarian food.

And no blacklisted Iranian banks were involved.We hope to send $5 million worth of tea each month to compensate Iran for pending oil purchases from four years ago,The Cultivation Ministry said: "The proposed scheme will save Sri Lanka's much-needed foreign currency

as settlements to Iran will be made in Sri Lankan rupees through the sale of Ceylon tea," but a spokesperson for the association said. Sri Lankan farmers who including all the major farming companies in Sri Lanka. said that this transaction model is "[adhesion] plaster by the government"
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