Not the first time this has been discussed.*
From The Cradle, June 24:
....MUCH MORESri Lanka will begin sending tea to Iran next month in lieu of paying some $250 million owed for oil, Reuters reported on 23 June, as the island country seeks to protect its US dollar foreign exchange reserves and bypass restrictions on trade with Iran due to US sanctions.
“This is very timely for us because we get access to an important market, and Iran and Sri Lanka can trade without relying on dollars,” Sri Lanka’s Tea Board Chairman Niraj de Mel told Reuters.
“The agreement was to send $5 million worth of tea each month for 48 months, but we plan to start with about $2 million monthly.”
The barter agreement to pay for oil purchased in 2012 was first reached in 2021 but is finally set to begin next month.
Sri Lankan government official Ramesh Pathirana said the oil-for-tea barter arrangement would circumvent sanctions imposed on Iran by the US because tea is considered a foodstuff.
He added that the barter payment method means no sanctioned banks will be involved.
Instead, state-run Ceylon Petroleum Corp will provide rupees to pay for tea shipments to Iran via Sri Lankan exporters....
*July 24, 2018
Sri Lanka Will Pay Its Oil Debt To Iran With Tea
