Sri Lanka –Iran banking transactions...

The Treasury official said the regular banking channels will operate after settling certain issues adding that the CB and local banks, especially major ones, are very cautious in the resumption of transactions.

He noted that although the US economic sanctions have been lifted, the US Treasury Department’s office of financial assets control has made a directive that no payments linked to Iran may be processed through the US financial system. Addressing a ceremony in Colombo on Wednesday, Speaker Karu Jayasuriya said that doing business with Iran will not be a problem following the restoration of banking transactions soon. He also called for the development of trade and economic ties between the two countries, especially after the resumption of two-way banking. Trade and investment relations between Sri Lanka and Iran which were affected following US sanctions will regain momentum after the removal of banking barriers, he claimed.

Some of the payment issues relating to trade between the two countries are yet to be resolved, a senior Treasury official said emphasising the need to settle debt in a phased out manner with mutual understanding. The agreement of purchasing crude oil from Iran should also be renewed as oil imports from the capital, Tehran came to a standstill after the imposition of sanctions, he disclosed. Sri Lanka’s oil debt to Iran was US $251 million as the country used to import 40,000 barrels of crude per day, he said adding that the oil refinery at Sapugaskanda can only process crude oil imported from Iran.