Iran ready to help Sri Lanka through barter system, JVs: Envoy

Tuesday, 24 November 2020 01:38 - - {{hitsCtrl.values.hits}}

By Shihar Aneez

Iran Ambassador Hashem Ashjazadeh

Hashem Ashjazadeh, the new Ambassador to Sri Lanka says his country is ready to assist Sri Lanka despite the limitation of US-imposed sanctions.

Since the sanction was imposed in 2012, Sri Lanka is forced to stop importing Iranian light crude officially from the nuclear-powered nation and the island nation still owes $ 250 million to Iran from the past oil imports before the sanctions. The delay was because sanctions prevent Sri Lanka using international banking system to pay the money in US dollars.

“Sanction is a reality. We should find some solutions in doing our business and there are a lot of ways,” Ashjazadeh said in an interview in Colombo.

Iran has been one of the top exporters of Sri Lankan tea and discussions for a crude oil for tea deal did not take off due to lingering negotiations on a barter system without using US dollars.

“We can do a lot. It is not only oil and tea,” Ashjazadeh says.

“There is an issue on money transaction through banking system because of the sanctions. We propose to open an account with Sri Lanka Central Bank and Sri Lanka can open an account with Iranian Central Bank. The exports between both countries could go to these accounts and then weekly and monthly they can balance the accounts in rupees and riyal.”

He said the discussions on a possible barter system has made progress and Iran is ready to export petro chemicals and equipment as well.

“We are not in a position to invest a lot. But we can help in constructions, roads and we also can export through joint ventures,” he said.

“Sri Lanka should not consider Iran as only an 80 million market. It should consider it as a 300 million people market as we have our neighbours as well. We export a lot to Turkey, Iraq, and CIS countries. So potentially we can do a lot. If Sri Lanka wants assistance, we are ready to help. We can do something for Sri Lanka. We have some limitations because of sanction, but we can go with joint ventures if Sri Lanka likes.”