This agreement reached following a proposal made by Iranian Foreign Minister Dr. Hossein Amir-Abdollahian when he held extensive discussions with Prime Minister Dinesh Gunawardena in Colombo. .

This suggestion comes as a solution for financial transaction for trading with Iran in consequent to US economic sanctions on that country.

Moreover The United States on Wednesday said it had imposed sanctions on a subsidiary of the Central Bank of Iran (CBI), along with two entities based in the United Arab Emirates, one in Turkey and on three individuals for smuggling U.S. technology to the CBI.