This barter agreement has been activated by Mr Rarnayke by directing the petroleum corporation to pay $5 million to the tea board settle Iran ‘fuel dues amounting $250 million in instalments.

The first payment of tea has been made in August and tea shipments scheduled for early September, SL tea board sources said.

The Tea Board Chairman Niraj De Mel said that of the 80 exporters on the list of exporters to Iran about six of them will be exporting the first consignment of teas under this agreement by early September.

The agreement is valid for a period of four years or 48 months and at the amount of $5 million per month.