Iran, Sri Lanka ready to ink MOU
View(s):Iran and Sri Lanka have finalised the text of an MOU pertaining to the sale of Ceylon tea in exchange for deducting the debt on fuel imports purchased nearly eight years back.
Official sources said that Sri Lanka has already purchased US$250 million worth of fuel about eight years back and this amount will be settled by sending tea stocks to Iran and the Sri Lankan government will pay the money to the local exporter. The MOU is likely to be signed in about two months’ time.
About US$5 million worth of tea stocks will be sent monthly to Iran to cover the debt owed for oil purchases made by Sri Lanka in the past.
This MOU is considered to be suitable for Sri Lanka and since this is an outstanding debt it can be settled, sources said adding that this is particularly a win-win situation for Sri Lanka.
While the text of the MOU has been finalised it is learnt that due to Iran’s presidential elections there is a delay in signing the agreement and considering the current pandemic situation in Sri Lanka should this continue the two sides are likely to sign the MOU virtually.
Sri Lanka has been unable to carry out direct trading with Iran following the US sanctions imposed on Iran and as a result had been negotiating to settle its debts in oil for tea exports that were hit as a result of these issues. (SD)