Iran wants Sri Lankan banks to expand to Tehran

Addressing Iran’s new Ambassador to Sri Lanka Mohammad Nabi Hassanipour on 12 December in Colombo, Minister of Industry and Commerce Rishad Bathiudeen stated that Iran wants Lankan banks to expand to Tehran, and is looking for JVs with local companies and direct shipping.

Minister Bathiudeen added that Iran and Sri Lanka “should enhance Business to Business (B2B) level cooperation” further and that linkages between business chambers in both countries are the key to achieve this.

Hassanipour was making his first courtesy call on Minister Bathiudeen, leading to an in-depth discussion of bilateral trade aspects between Minister Bathiudeen and him, at the Ministry of Industry and Commerce, Colombo 3.

Minister Bathiudeen said, “Both countries have long historic relations, in that Iranian traders have been visiting Sri Lanka for centuries. Currently our total bilateral trade stands at $ 890 million,” adding, “I also refresh my previous invitation to high level Iranian delegations to Sri Lanka Expo 2012, the mega show to be held after 15 years in Colombo.”

According to the Commerce Department of Sri Lanka, trade between Sri Lanka and Iran has continued to show a positive trend since 2001 despite the balance of trade between two countries has heavily and continuously been in favour of Iran over the years.

According to the Customs data, Iran was Sri Lanka’s fourth import destination in 2010.

The current total trade between both countries stand at $ 890 million. According to the Department of Commerce of Sri Lanka, Ceylon tea in bulk has been our major export item to Iran, while coconut remains as the second export item. Other export items are coconuts, cashew, trailers, palm oil, tyres and activated carbon. Petroleum oils remain as the most important item of import from Iran. Other key imports are wheat, urea, palm oil and food preparations .

 “Sri Lanka is now on a strong track of development and it stands out among the developing countries, especially among Asian countries,” praised Hassanipour. “Sri Lanka also offers many opportunities in its new peaceful era. Our private sector is keen to enter Sri Lanka using the joint venture model and our companies are keen for JVs with Sri Lankan companies. Our private sector is keen on JV in Sri Lanka’s infrastructure, pharmaceutical and healthcare sectors,” Hassanipour indicated. He further said, “I also invite more and more Sri Lankan banks to expand into Iran and begin operations there. Iran is keen to resume direct flights with Sri Lanka and also wants to open direct commercial shipping with Colombo thereby strengthening bilateral shipping cooperation. I also see that there is a need to increase the capacity of Sri Lanka’s oil refining and I believe the Sri Lankan refinery needs an extension. Iran is also looking at conducting single country format Iranian Trade Fairs in Colombo.”   Both Hassanipour and Minister Bathiudeen also explored preliminary groundwork towards the next session of bilateral Joint Economic Commission meeting to be held in Tehran in 2012.

Both countries have already expressed their interest to this end especially when the Iranian Vice-Minister of Foreign Affairs Seyyed Amir Mansour Borghai took part in a special dinner meeting hosted by Minister Bathiudeen in July at Cinnamon Grand, Colombo.