The Sri Lanka Tea Board announced that exports of Ceylon Tea have successfully offset $60 million of the country’s fuel bill owed to Iran. Since 2011, Sri Lanka had accumulated arrears of $251 million for fuel imports from Iran.
Chairman Niraj De Mel noted that this settlement was achieved as tea exports to Iran tripled during this period.
Sri Lanka faced financial challenges due to the Covid-19 pandemic and domestic economic downturn, which led to foreign exchange shortages and hindered the ability to meet financial obligations to Iran.
An agreement was reached between the two nations to settle outstanding debts through tea exports. De Mel reported that from January to May 2024, tea exports to Iran totaled 4.98 million kilograms, a significant increase from the 1.85 million kilograms exported during the same period in 2023.