Iran has reportedly dismissed a plan by Sri Lanka to clear $250 million of oil debts with tea shipments as “impossible”.
The Financial Tribune reports that the offer was made by Lucille Wijewardena, chairman of Sri Lankan Tea Syndicate, as Colombo attempts to get around international sanctions on Iran.
“If the Ceylon Petroleum Corporation (CPC) pays us, we can continue the export of tea to Iran as there is no ban on this commodity,” he told the Sunday Times. “The amount the CPC owes Iran can offset payment for a year of tea export to Iran.”
However, the offer has been dismissed by Iran.
Sales and Marketing Manager of Iran Tea Organization Goudarz Khordadpour said the most tea it would import stands at 55,000 tons, worth approximately $275,000.
Sri Lanka owes 900 times as much as Iran’s entire tea import bill, the Financial Tribune added.
In 2016, Sri Lanka exported 33,929 metric tons of tea to Iran but the volume fell to 27,419 in 2017.