Amid escalating tensions in West Asia, Sri Lankan and Iranian foreign ministers have discussed maintaining and strengthening the relationship between the two countries.
Foreign Minister Vijitha Herath told the Sunday Times that he spoke with his Iranian counterpart, Abbas Araghchi, by phone earlier this week. The discussion came amid reports suggesting that Sri Lanka, concerned about potential US tariffs, was considering halting exports to Iran—a nation already struggling under sanctions imposed by the United States and other Western countries.
Responding to these reports, Mr. Herath stated, “There is no such thing.”
He highlighted that Sri Lanka is still repaying a US$250 million loan to Iran for crude oil shipments purchased before the West Asian nation faced international sanctions over its nuclear program.
Since tea dominates Sri Lanka’s exports to Iran, the loan repayment is structured as a tea-for-oil barter deal. Since August 2023, Sri Lanka has shipped US$5 million worth of tea each month, with payments to exporters made through the Ceylon Petroleum Corporation (CPC) via the Sri Lanka Tea Board (SLTB). Mr. Herath confirmed that Sri Lanka would continue to honour this agreement.
The two ministers also discussed the current situation in Iran. Minister Herath said Mr. Araghchi informed him that the Iranian economy is recovering, and there is hope for improved relations with the US following meetings this week between Iranian and US delegations, mediated by Oman.
Mr. Herath emphasized that the bilateral relationship between Sri Lanka and Iran should continue and be strengthened. He added that Sri Lanka stands by Iran and appreciates its steadfast support over many years. Iran, he noted, has also supported Sri Lanka at the United Nations Human Rights Council. “We have expressed our thanks to Iran for its support,” he said.
The phone conversation occurred prior to the White House’s announcement that US President Donald Trump signed an executive order aiming to impose additional tariffs on countries that continue to trade with Iran. The order, issued on Friday, does not specify the tariff rate but cites 25 per cent as an example. It applies to goods imported into the US from any nation that “directly or indirectly purchases, imports, or otherwise acquires any goods or services from Iran.”
