Friday Apr 26, 2024
Friday Apr 26, 2024
Thursday, 21 January 2016 00:00 - - {{hitsCtrl.values.hits}}
The first official delegation to Sri Lanka from post-sanctions Iran will land in Colombo in February to start crucial joint trade talks to re-commence petroleum and petrochemical sales to Sri Lanka while also returning to potential higher Ceylon Tea and apparels exports.
“We are entering the post-sanction era, it is time to upgrade our bilateral relations, including trade.
In fact, renewing our bilateral ties, including economic, is the top priority of my mission to Colombo,” said the newly-appointed Iranian Ambassador to Sri Lanka Mohammed Zaeri Amirani this week during a meeting with Industry and Commerce Minister Rishad Bathiudeen.
According to the Department of Commerce, bilateral trade between the two countries surpassed $ 1 billion in 2011 but in 2012 two-way trade dropped to $ 857.81 m. Trade continued to decline thereafter due to tightened sanctions posed on Iran and as a result, last year’s total bilateral trade stood at just $ 188 m. Sri Lanka used to import its petroleum requirements from Iran till 2012 of an estimated 50,000 barrels a year but when the sanctions took effect in 2012, total trade declined to $ 660 m from 2011’s high of $ 1.4 billion.
“As we enter the post sanction era, it is time to upgrade our bilateral relations, including economic. Lifting of sanctions on us has a strong message to the international community and international groups-that, Iran is now a transparent, responsible country,” said Amirani.
“Sri Lanka has good international relations and a good tourism sector and we see these positively. In fact, renewing our bilateral trade ties is the top priority of my mission to Colombo, in the interest of both countries. We have started the Joint Commission for trade promotion and this is an unfinished job. Tehran has accepted your suggestion for the next Joint Trade Commission and we are eagerly looking forward to meet Lankan officials in Colombo this February.”
Iran is looking to supply medicine, medical equipment, agricultural machinery such as tractors, fertiliser, bitumen, and petrochemicals to Sri Lanka.
“During the February meet we can give a better picture of our requirements but we are keen to import Ceylon Tea, apparels, and coconuts and cashew. I am pleased Sri Lanka would be able to re-commence petroleum imports from Iran from now.”
Responding to Amirani, Bathiudeen said: “I visited Iran twice during the time of sanctions. Despite sanctions Iranians supported Sri Lanka during its war and we are thankful to the people of Iran. We warmly welcome the official delegation from Tehran for this year’s Joint Commission Talks that start on February 24 in Colombo.”
Last year’s top Lankan exports to Iran were tea ($89m), coconuts and other nuts ($8m) and paper boxes while imports (total at $8.5m only) from Iran were screws, bolts, nuts, structured parts and pumps for liquid.
