TEHRAN - Sri Lanka is determined to resume its tea exports to Iran, Colombo Page reported on Thursday.

As reported, in a cabinet meeting, the country's government announced that tea exports to Iran should start as of the next month.

Sri Lankan agriculture minister said that the country is set to resume tea exports to Iran by the end of August.

Earlier this month, Sunday Times reported that Iran is expected to sign a deal with Sri Lanka to receive the country’s famed tea over the next two years in exchange for the settlement of loans obtained for the purchase of oil.

The issue was discussed during a meeting between the Sri Lankan Foreign Affairs Minister Tilak Marapana and Minister of Plantation Industries Navin Dissanayake together with other relevant officials of the two ministries, Plantation Industries Ministry Secretary J.A. Ranjith said on July 11.

Sri Lankan tea exporters are currently facing a crisis since not only has the prices of tea dropped but the industry is unable to export to some of its key markets due to U.S. sanctions imposed on dollar transactions with Iran.

Following Turkey and Russia, Iran is one of the major buyers of Lankan tea, as Colombo exported 27,419 tons of the product to Tehran last year.

Most of Iran's trade and economic exchanges with Sri Lanka is in the fields of constructing refinery, oil and tea.

Iran was involved in renovating an old refinery in the country and is also seeking to build a new one.

EF/MA