Central Bank holds talks with US on Iran sanctions

The?Central Bank has held talks with the US on the sanctions imposed on Iran, the Ministry of Finance said today.

Central Bank Governor?Indrajith Coomaraswamy?said that sanctions on certain items have been revoked and tea is one such item that could be now exported to Iran.

However the?Governor said that though tea export does not come under US sanctions, the ban on financial transactions has not yet been lifted.

Coomaraswamy said that his banks officials in Washington had already approached US officials in this regard.

He also said that according to Central Bank of Iran there is a possibility for transaction of money through the Central Bank of Italy.

The Governor asserted that once the ongoing discussions with US officials and the officials of the Italy bank is completed it could be possible to pave the way for the transactions under the normal SWIFT arrangements.

The Finance Ministry said that Sri Lanka endeavours to establish barter trade with Iran like what is practiced by India did not materialize in the case of Sri Lanka as the country does not have large volume of exports to Iran.

Meanwhile, Minister of Finance Ravi Karunanayake also opined that trade distortions where one party is given concessions and the other party being provided with protectionism should be taken out of business when the country is fully transformed into manufacturing economy for which the process is underway.

Karunanayake said that the Government expects more foreign investment that would promote export oriented business inclusive of entrepot trade.

Sri Lanka wants foreign debts to be replaced by investment which is the policy of the Government of President Maithripala Sirisena and Prime Minister Ranil Wickremasinghe. (Colombo Gazette)