Sri Lanka settles 35 out of 250 million dollars owed to Iran

• The government decided to settle the dues bartering tea for oil
• The tea-for-oil deal was agreed upon in December 2021

By Kelum Bandara

Sri Lanka had settled US $ 35 million out of US$ 250 million owed to Iran for oil purchased in 2012, an official said.  
Sri Lanka could not make payment because of sanctions on Iran. Later, the government decided to settle the dues bartering tea for oil.
An official who is familiar with the transactions said the country had settled US $ 35 million by the end of February and another US$ 10 million was to be settled soon.  
The tea-for-oil deal was agreed upon in December 2021, but exports were delayed by the economic crisis.