More talks on teafor-oil deal with Iran

Tea Board and Commerce Department officials will meet next week to discuss payment modalities for tea sales to Iran.

The discussions come in the wake of the Foreign Affairs Ministry regulations in keeping with United Nations Security Council Resolution 1737 of 2006 and 2231 of 2015.

Several proposals will be discussed at the meeting on how a payment structure can be worked out so that international sanctions are not breached, the Sunday Times learns.

The Sunday Times exclusively reported last week that the Sri Lanka Tea Board had made a proposal that the payments due from Iran for tea purchases from Sri Lanka be set off against the US$ 250 million that the Ceylon Petroleum Corporation ( CPC) owes to Iran for oil.

The sanctions regulations were issued last week by Foreign Affairs Minister Tilak Marapana. These prohibit certain financial dealings with Iran and provide for the appointment of a Competent Authority to ensure compliance with the sanctions.

The Competent Authority and the Central Bank’s Financial Intelligence Unit will be providing guidelines and directions to institutions on their obligations and duties under these regulations.

Iran is Sri Lanka’s fourth largest tea buyer. In 2016, Sri Lanka exported 33,929 metric tonnes of tea to Iran but this fell to 27,419 in 2017.