Iran to use SL rupee for fuel trade

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)