In a unique trade agreement, Sri Lanka has settled a USD 60 million oil debt to Iran by exporting tea. The innovative arrangement allows Sri Lanka to pay off its outstanding oil debt to Iran, leveraging one of its key exports – tea.
The settlement was facilitated through an agreement between the two nations, enabling Sri Lanka to utilize its tea production as a means of debt repayment. This barter deal underscores the importance of tea in Sri Lanka’s economy and its role in international trade.
Sri Lankan officials have highlighted this deal as a strategic move to manage the country’s debt while also promoting its tea industry. The agreement ensures that Sri Lanka can meet its financial obligations without straining its foreign exchange reserves.
Iranian authorities have welcomed the agreement, noting the high quality of Sri Lankan tea and its popularity in Iran. This deal also exemplifies the growing trend of barter agreements between countries facing economic challenges, allowing them to navigate international sanctions and trade restrictions.
As the agreement is implemented, it is expected to strengthen economic ties between Sri Lanka and Iran and potentially pave the way for similar arrangements in the future.
