Iran to use SL rupee for fuel trade

15 August 2018 09:22 am - 17     - {{hitsCtrl.values.hits}}


The Cabinet was told yesterday that Iran had agreed to use the Sri Lankan rupee as the medium of exchange to carry out its fuel trade transactions with Sri Lanka because of problems in using the US dollar because of economic sanctions likely to be imposed on Iran.

Iran is facing sanctions imposed by the United States making it difficult for it to international business transactions in the US dollar.

Sri Lanka purchases a bulk of its crude oil requirement from Iran and purified at the Sapugaskanda facility.

Iran's willingness to carry out its business transactions in Sri Lankan rupees was conveyed to the Cabinet by Minister Sarath Amunguma. Iran purchases large quantities of tea from Sri Lanka. (Kelum Bandara)

  Comments - 17

  • Lord Wolfstein Wednesday, 15 August 2018 09:52 AM

    Trump will punish Sri Lanka when it trades with Iran. Unfortunately, Sri Lanka does not have the economic power to oppose US orders.

    Mano Wednesday, 15 August 2018 11:46 AM

    Trump is not an idiot like you to punish small countries that do minimal essential business with Iran.

    Stan Wednesday, 15 August 2018 06:18 PM

    He would, but that shouldn't matter because the rest of the world doesn't really care what he says. Most countries are likely to follow the EU in passing blocking statutes to shield their economies from US sanctions on Iran. If US retaliates, it would be a violation of the World Trade Organisation's principles.

    some questions Wednesday, 15 August 2018 11:44 AM

    Is there any benefit for Sri lanka by doing so? Will LKR appreciate in value?

    DG Thursday, 16 August 2018 12:22 PM

    Iran will pay for our tea in SLRs.?

    Philip Wednesday, 15 August 2018 12:05 PM

    Trump (USA) needs Sri Lanka in its defense of Chinese aggression in South Asia. He knows that if he upsets us we will simply trade more with China or look for new markets with all his other enemies (Canada, Mexico, Turkey, EU etc etc).

    Jaliya Wednesday, 15 August 2018 07:55 PM

    Sri Lanka is already trading with the enlisted countries by the Us as trade embargoed. We just pretend to be friendly to the US.

    Gamaya Wednesday, 15 August 2018 01:26 PM

    Excellent. Way to go!

    Casanova Wednesday, 15 August 2018 01:42 PM

    Uncle Sam is gonna get mad at the Sri Lankans, rest of the world will unite and the United States will collapse like what happened to the former soviet union, there will be workers coming to Sri Lanka from US soon but ensure to check their IQ first.

    Don't be silly Wednesday, 15 August 2018 08:49 PM

    I'm not a trump fan by any means but what you just said is quite delusional. The US may lose hegemony but it won't lose its anchorage as a world power.

    Gihan Wednesday, 15 August 2018 02:23 PM

    Get the blady bond scam money before you talk any more

    viks Wednesday, 15 August 2018 02:41 PM

    Lord, SL doesn't need to align with US. What have the US done to SL when compared to Iran? Get out of the western thinking.

    Hadam Wednesday, 15 August 2018 02:58 PM

    Well said, one who clever would not economise to western power trap. Its like planning your cooking your food without knowing how many guests you having. What happening to Turkey now iwould be a good lesson.

    Lord Wolfstein Wednesday, 15 August 2018 03:26 PM

    I call the sanctions against Iran unjustified. Unfortunately, you do not see the reality. However, the US has power to bankrupt Sri Lanka in no time. Possible types of punishment are as follows: All Sri Lankan banks can no longer trade with the US. Major banks in all countries are prohibited from transferring US dollars to Sri Lanka, SL ships and planes are no longer allowed to land in the US, SL accounts in other countries are frozen. Other countries are forbidden to trade with SL and so on. Trump is very vengeful if his orders are not followed.

    Stan Wednesday, 15 August 2018 06:20 PM

    Wolfstein, you're right but most countries (at least the important ones like Japan, India, EU states and China) wouldn't comply with US sanctions.

    Jaliya Wednesday, 15 August 2018 08:31 PM

    US sanctions against Iran for non-cooperation on a nuclear truce is fully acceptable. The love Iran has for sri lanka is more than a oily dicey grip, it’s a complicated operation itself. If the fuel trade is to continue in LKR we can almost guarantee some trade sanctions will be imposed on sri lanka. No one thanks the US for the current low crude oil prices and patrolling the Strait of Hormuz where 70% of crude oils is transported. We have a group of anti western idiots in sri lanka, they only like to eat burgers and French fry’s to cover up their level of incompetent

    stephen Thursday, 16 August 2018 06:39 PM

    SL is not the only country that Iran deals with. One must check how and in what currency the other countries trade with Iran

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