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Herath holds talks with Iran’s FM; vows to honour repayment deal
View(s):By Damith Wickramasekara
Amid rising tensions in West Asia, the Sri Lankan and Iranian foreign ministers have discussed maintaining and strengthening ties between the two countries.
Foreign Minister Vijitha Herath told the Sunday Times that he spoke with his Iranian counterpart, Abbas Araghchi, by phone earlier this week. The conversation took place amid reports that Sri Lanka, fearing further US tariffs, was on the verge of stopping exports to Iran, which has been hit hard by sanctions imposed by the United States and other Western nations.
When asked about these reports, Mr Herath said, “There is no such thing.”
He noted that Sri Lanka is still repaying a US$250 million loan to Iran for crude oil shipments bought before the West Asian nation 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). Mr Herath said Sri Lanka would continue to honour this agreement.
The two ministers also spoke about the current situation in Iran. Minister Herath said that Mr Araghchi told him the Iranian economy was recovering. There was also hope that relations with the US would improve as Iranian and US delegations met this week for discussions mediated by Oman.
Mr Herath said he told Mr Araghchi that the bilateral relationship between Sri Lanka and Iran should continue and be strengthened. He added that Sri Lanka stood by Iran and appreciated the country’s steadfast support over many years. Iran was also one of the countries that supported Sri Lanka at the United Nations Human Rights Council, the minister pointed out. “We have expressed our thanks to Iran for its support.”
The phone conversation between Mr Herath and Mr Araghchi took place before yesterday’s 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.
The order, issued on Friday, does not specify the rate that could be imposed but uses 25 per cent as an example. It says the tariff could apply to goods imported into the US from any nation that “directly or indirectly purchases, imports, or otherwise acquires any goods or services from Iran”.
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