Lanka to begin paying back oil debt to Iran through tea exports

Iran and Sri Lanka have signed an agreement in Colombo to settle the outstanding oil debt issue.

Chairman of Trade Promotion Organization of Iran Ali-Reza Peimanpaak and Minister of Trade Bandula Gunawardane signed the agreement.

Peimanpaak, who is also a deputy for the Ministry of Industry, Mines and Trade, arrived in Colombo early on Monday as his first trade destination to East Asia.

Based on a mutual agreement, Sri Lanka will monthly export tea to Iran to repay parts of its oil debt to the country, Peimanpaak underlined. The issue of Sri Lanka’s oil debt to Iran remained unsolved for years until the visit.

During his stay in Sri Lanka, Peimanpaak held talks with several local officials and reviewed ways to develop the economy and make use of the existing opportunities.