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Wednesday, 4 July 2018 00:00 - - {{hitsCtrl.values.hits}}
By Charumini de Silva
The Government assured it would resolve the payment concerns of tea exports that are dampened by the US sanctions on Iran, as the Central Bank has now begun to negotiate with a couple of international banks to get assistance on payment term mechanism, a top Minister confirmed.
“We are trying to negotiate with the Americans and the Europeans on payment terms. The Central Bank is already having discussions with the stakeholders. There are a couple of German banks that were interested in helping us. I am very confident that it can be worked out very soon,” Plantation Industries Minister Navin Dissanayake told Daily FT.
Pointing out that India had already worked out a system, he emphasised that Sri Lanka could also replicate or follow the same to export tea to Iran. The Minister suggested that if Sri Lanka could work out the payment terms, then most of the problems could be sorted out.
“Iran is buying a lot of our tea and we have a bilateral agreement with them. Just because the Americans put sanctions on them, it doesn’t mean that they have to impose a sanction on us. Right now our tea is going to Iran, but the problem is with the payment terms,” he added.
The Minister stressed that the Government had lobbied America many times that tea is an agricultural good and does not come under sanctions.
Dissanayake pointed out that the US Government should be sympathetic towards Sri Lanka in this situations, as the millions of workers and livelihoods in Sri Lanka should not be affected by the global political situation.
“I have explained this to the American Ambassador in Sri Lanka and he was sympathetic to my thinking,” he added.
