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Sri Lanka Settles US$ 35 Million of US$ 250 Million Debt to Iran for Oil Purchases

An official disclosed that Sri Lanka has successfully paid off US$ 35 million out of the US$ 250 million owed to Iran for oil procured in 2012.

Sri Lanka encountered challenges in making payments due to sanctions imposed on Iran. Subsequently, the government opted to clear the outstanding dues through a barter agreement involving tea in exchange for oil.

A knowledgeable official involved in the transactions revealed that as of the end of February, the country had settled US$ 35 million, with an additional US$ 10 million slated for settlement in the near future.

The tea-for-oil arrangement was reached in December 2021, yet the exports were hindered by the prevailing economic crisis.

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