Iran doubles tea imports from Sri Lanka

(December, 10, Colombo, Sri Lanka Guardian) Minister of Internal and International Commerce and Food, stated that Iran is expected to double its tea imports from Sri Lanka to an estimated 20,000 tonnes.

There had been an agreement at the sixth Sri Lanka- Iran Joint Commission meeting, in Teheran earlier this month, where Minister Wickremaratne and Iranian Minister of Finance and Economy Hussain Namazi were the two signatories to the agreement on behalf of their countries.

Iran has imported over 9,000 tonnes of Sri Lankan tea in 1999 and the quantity of tea to be imported from Sri Lanka exceeds 20,000 tonnes this year. The agreement also envisages Sri Lanka giving Iran a three month credit line for tea exports and Sri Lanka receiving six months credit for petroleum imports from Iran from which Sri Lanka imports up to 60% of its crude oil requirements.

There will also be phenomenal rubber exports from Sri Lanka to Iran, which has some of the largest tyre factories in the world. There will also be an increase in the exports of spices.

Also under active consideration is the establishment of a tea blending factory in Kish Island, Iran which will be a joint venture to re-export Sri Lankan tea under the Ceylon Tea label, to the Russian market. This project is yet at the feasibility stage.

The Iranian team of businessmen would also visit Colombo shortly with the objective of establishing joint venture industries for the manufacture of carpets, chandeliers, melamine and furniture. These businessmen expect to meet the demand in the South Asian market, using Colombo as a base.

The Agreement also encompasses the signing of a Double Taxation Agreement and an Investment Protection Agreement which means that Sri Lankan businessmen could access Central Asian markets and the West.