Since 2011, Sri Lanka has accumulated an arrears of US $ 251 million for fuel imports from Iran.

Sri Lanka Tea Board Chairman Niraj De Mel said that the settlement was achieved, as exports of tea to Iran tripled during this period.

Facing financial challenges exacerbated by the Covid-19 pandemic and domestic economic downturn, Sri Lanka struggled to meet its financial obligations to Iran, due to the foreign exchange shortages.

To resolve this issue, an agreement was reached between the two nations, focusing on settling outstanding debts through tea exports.

De Mel reported that tea exports to Iran from January to May 2024 totalled 4.98 million kilogrammes, a significant increase compared to 1.85 million kilogrammes exported during the same period in 2023.

DM