Sunday Times 2
Energy crisis: Talk to Iran
View(s):Due to the coronavirus epidemic, the global economy, especially the economies of developing countries experienced a recession. Apart from the high death rate, unemployment crisis, inflation, and growing poverty, most developing nations also faced a foreign exchange crisis with their foreign reserves declining.
Since the pandemic’s outbreak, the global market has been in turmoil while the export-import trade has faced new challenges. Due to the rise in oil prices, transportation and shipping costs have hiked. As a result, the price of all goods increased while workers’ salaries remained the same or have been slashed.
With war breaking out between Russia and Ukraine, oil prices have risen up to the US$ 100 mark, and this has been yet another big problem for developing countries.
Sri Lanka is not an exception. Due to some external and internal factors, the people’s purchasing power in Sri Lanka is declining and the government tries to find urgent solutions. One of the biggest problems Sri Lanka faces is the energy crisis.
In this context, government leaders and decision-makers who are trying to find solutions to this problem are well advised to turn their focus on Sri Lanka’s relations with Iran.
Since Sri Lanka’s Sapugaskanda refinery is mainly suited for Iran’s oil, they should talk to the Iranian government and make arrangements to obtain Iran’s oil. According to international reports, Iran has been selling and exporting its oil to different countries despite the unilateral US sanctions. It is said Iran offers good discounts and long-term contracts.
So there is a big question why the Sri Lankan government does not explore the Iranian option to buy oil? It is said Iran is ready to deal with us through a barter system according to which we can obtain Iran’s oil and urea in exchange for our tea or other goods. This way, Sri Lanka could purchase oil, urea, cement, tar, and other goods from Iran.
- Malik Zamiri