Sri Lankan Foreign Minister Vijitha Herath engaged in a telephone conversation with Iranian Foreign Minister Abbas Araghchi last week, with discussions focused on maintaining and strengthening ties between the two countries.
According to the Sunday Times, Foreign Minister Vijitha Herath clarified reports that Sri Lanka was on the verge of stopping exports to Iran, fearing further US tariffs, stating that, “There is no such thing”.
Minister Vijitha Herath further revealed that Sri Lanka was still repaying a US$250 million loan to Iran for crude oil shipments bought before Iran was hit by a host of international sanctions due to its nuclear programme.
“Since tea dominates Sri Lanka’s exports to Iran, the loan is being repaid through a tea-for-oil barter deal. Since August 2023, Sri Lanka has shipped US$5 million worth of tea each month. Payments are made to the exporters by the Ceylon Petroleum Corporation (CPC) through the Sri Lanka Tea Board (SLTB),” he explained.
Sri Lanka’s Foreign Minister said Sri Lanka would continue to honour this agreement, adding that he told Araghchi that the bilateral relationship between Sri Lanka and Iran should continue and be strengthened.
Foreign Minister Herath also extended his gratitude to his Iranian Counterpart for Iran’s steadfast support over many years, pointing out that Iran was also one of the countries that supported Sri Lanka at the United Nations Human Rights Council.
The phone conversation between Herath and Araghchi took place before the announcement by the White House that US President Donald Trump had signed an executive order which aims to impose additional tariffs on countries that continue to trade with Iran. (Newswire)