Sri Lanka has begun resuming its export shipments to the West Asian region following the fragile ceasefire between Iran and Israel after a 12-day conflict. While shipments have recommenced, exporters remain cautious, noting that only time will tell how long the peace will hold.
Amid ongoing warnings from the United States about the possibility of renewed hostilities, Sri Lankan exporters believe it could take a few more weeks for the situation to fully stabilize. Despite the uncertainty, shipments are currently progressing.
However, a major concern for Sri Lankan tea exporters involves delays in the release of payments owed to them under the long-standing tea-for-oil barter agreement with Iran. Sources indicate that Iran, still grappling with the aftermath of the conflict, has yet to fully return to normal operations. As a result, key documentation from the National Iranian Oil Company confirming that the teas exported fall under the agreement has not yet been received in Colombo.
This lack of documentation has led officials at the Sri Lanka Tea Board (SLTB) to withhold disbursement of the corresponding funds. Exporters suggest that authorities are wary of proceeding with payments without the necessary paperwork, fearing potential repercussions for releasing funds prematurely.
While shipments to destinations such as Dubai and Israel have resumed, exporters are now facing delays ranging from one to ten days. Shipping agents have noted that, at present, the broader geopolitical situation in West Asia has had no immediate impact on Sri Lanka.
There is also concern about a possible closure of the Strait of Hormuz, a critical maritime passage. Should this occur, vessels en route to the Gulf may be forced to offload cargo at ports like Salalah or Colombo, potentially disrupting logistics chains.
In response to speculation that the Hambantota Port might benefit from increased vessel traffic due to congestion at Colombo Port, shippers clarified that such a development is unlikely. Since feeder vessels primarily call at Colombo, other ships offloading cargo for various destinations are not expected to divert to Hambantota.
Nonetheless, industry insiders noted the possibility of relay operations being established. In such a scenario, cargo intended for onward destinations may be dropped off at Hambantota and subsequently picked up by other vessels, enabling continued transport to the final port of call.
