Plantations Ministry Secretary J.A. Ranjith told the Sunday Times the decision followed discussions between Minister Naveen Dissanayake and the United States ambassador, Alaina Teplitz, in view of the existing US sanctions on dealings with Iran.
Mr Ranjith said that under the arrangements, Sri Lanka would be permitted to export up to a value of US$ five million per month to be set off against US$ 240 million which is due from Sri Lanka to Iran for previous oil imports.
“Iran is an important importer of Sri Lankan tea and the scheme will help the country to send its tea exports for about four years,” he said.
The secretary said Sri Lanka exported about 10 percent of its tea to Iran and the move would help to prevent Iran from going to another market.
The US sanctions prevent all countries from having financial transactions with Iran.