Iran-Sri Lanka trade prepares for a major upsurge after lifting of US-led sanctions

In the wake of last weekend’s lifting of economic sanctions on Iran, an official delegation from Iran is due in Colombo on February 23 to discuss resumption of normal trade ties.
Among the issues that the two sides would be looking at are recommencing petroleum and petrochemical sales to Sri Lanka and opening markets wider to Ceylon Tea and apparel exports, the Ministry of Industry and Commerce said on Wednesday. 
“We are entering the post sanction era, it is time to upgrade our bilateral relations, including economic. In fact, renewing our bilateral ties, including economic, is the top priority of my mission to Colombo,” said newly appointed Iranian Ambassador to Sri Lanka Mohammed Zaeri Amirani during a meeting with Minister of Industry and Commerce Rishad Bathiudeen in Colombo on Tuesday, January 19
According to the Department of Commerce, bilateral trade between the two countries surpassed US$1 billion in 2011 and in 2012 two-way trade totalled $857.81 million. 
Trade declined thereafter due to a decrease in imports from Iran and as a result, last year’s total bilateral trade stood at $188 million. Sri Lanka used to import its petroleum requirements from Iran till 2012 (50,000 barrels a year) but when the sanctions took effect in 2012, total trade declined to $660 million from 2011’s $1.4 billion.
Mr. Amirani said Tehran has accepted a Colombo offer for the next Joint Trade Commission between the two countries to be held in Colombo next month. Iran is looking to supply medicine, medical equipment and agricultural machinery such as tractors, fertilizer, bitumen, and petrochemicals to Sri Lanka. “During the February meeting we can give a better picture of our requirements but we are keen to import Ceylon Tea, apparels, and coconuts and cashew. I am pleased Sri Lanka would be able to re-commence petroleum imports from Iran from now.”