Sri Lanka suffers from US-led sanctions on Iran

[Lankan Ranger]

Sri Lanka suffers from US-led sanctions on Iran

Sri Lanka, which relies heavily on imports of Iranian oil, is feeling the impact of US-led sanctions on Tehran. Rising global prices, due in part to US-led sanctions against Iran have led the price of kerosene to rise 49 per cent, diesel 36.9 per cent and petrol 7.7 per cent in Sri Lanka.

Adding to Sri Lankan frustration is the fact that the South Asian nation’s only oil refinery works best with Iranian light crude.

Colombo is also unable to receive payment of approximately US$25 million in lieu of tea sent to Iran due to the sanctions that began last June.

Sri Lanka suffers from US-led sanctions on Iran

 

[Lankan Ranger]

 

[Lankan Ranger]

How to solve the payment problem, any idea?

 

[IndoUS]

Do what India is doing pay them in your own currency and make up with investing in their infrastructure development. Indian companies are helping in the building Iranian infrastructure and the rest 45% of the pay is made in Indian currency.

 

[Bhairava]

China will save you

 

[Alchemy]

How to solve the payment problem, any idea?

Import Oil worth that amount

 

[Lankan Ranger]

China will save you

Sri Lanka allows Chinese currency for International Transactions

The Monetary Board of Sri Lanka's Central Bank has decided to include the official currency of China as a designated currency allowed for international transactions through banks in Sri Lanka.

The Board took this decision to include Chinese Renminbi (Yuan) at its meeting on Monday, the Central Bank said in a statement today.

Accordingly, the public can now undertake all permitted transactions in Chinese Renminbi with banks authorized for such transactions, the statement said.

Announcing the Board's decision, the Central Bank said China is recognized today as the world's second largest economy and a leading player in international trade, investments, and foreign reserves.

The Renminbi, according to the Central Bank, has been gradually evolving as a globally acceptable currency due to China's extensive economic connections with many countries.

Since Sri Lanka has a growing volume of trade and investments transactions with China, the use of the Renminbi, in banking transactions would significantly facilitate such trade and investments, the Central Bank said.

Sri Lanka : Sri Lanka Central Bank allows Chinese currency for international transactions

 

[Lankan Ranger]

 

[kingofkings]

I don't think there's anything Sl can do against Uncle Sam, even if they do it'll only hurt them in ever possible way. As per the dot connection with your suggestion ( ie currency ) it'll just make em more worse, And I don't think Sl gov is that insane to directly go against em.

 

[Lankan Ranger]

I don't think there's anything Sl can do against Uncle Sam, even if they do it'll only hurt them in ever possible way. As per the dot connection with your suggestion ( ie currency ) it'll just make em more worse, And I don't think Sl gov is that insane to directly go against em.

Sri Lanka may drop US dollar to meet Iran oil sanctions

Sri Lanka may avoid a costly squeeze by the United States sanctions on Iranian crude by purchasing it in a currency other than US dollars officials said on Sunday.

The Indian Ocean nation is facing the most potential collateral damage from the sanctions, which are meant to cut off the dollars Washington believes are being used to fund Iran's nuclear ambitions.

Sri Lanka imports 93 percent of its oil from Iran, OPEC's second biggest producer, and its sole refinery, the 50,000 barrel-per-day Sapugaskanda plant, can only refine Iranian crude and three or four others that are in short supply.

U.S. Deputy Assistant Secretary of the Treasury for Terrorist Financing, Luke Bronin, flew in for a one-day visit on Thursday to meet a host of government officials to explain the options available and the impact on Sri Lanka.

Sri Lanka's central bank pays its Iranian counterpart on behalf of the state-owned Ceylon Petroleum Corporation through the Asian Clearing Union (ACU), a nine-nation trade clearing house set up in Tehran in 1974.

The ACU method would run afoul of the sanctions, which were signed into law on Dec. 31 and are due to take effect after a six-month deadline.

President Mahinda Rajapaksa last week complained Sri Lanka and other small nations were being unfairly squeezed in a fight not of their making, and said he had asked his officials to find out what alternatives the United States could offer.


Sri Lanka may drop dollar to meet Iran oil sanctions - Economic Times

 

[longyi]

There weren't much outcries in US when India went ahead and import more Iranian oil. If Sri Lanka desperately needs the Iranian crude, I don't see there should be a double standard.

Now it is the time that nations of the world, especially the smaller nations, begin to consider getting away from the hegemony of American financial system and search for substitutes other than the dollar.