The Sri Lanka Tea Board said that USD 60 million of the USD 251 million owed to Iran for fuel imports since 2011 has been settled through tea exports. This follows a strategic agreement between the Sri Lankan and Iranian governments, enabling tea exports as a method of debt repayment.

The debt accumulation over the years was due to economic challenges such as the COVID-19 pandemic, European sanctions since 2011, the collapse of the tourism industry post-Easter attacks, and an overall economic downturn, which led to a shortage of dollars and hindered payments.

Sri Lanka Tea Board Chairman Niraj De Mel confirmed that as of July 15, USD 60 million has been settled through tea exports. In the first five months of 2024 alone, 4.98 million kilograms of tea were exported to Iran, compared to 1.85 million kilograms in the same period in 2023.