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On Line: 26 November 2012 16:45
In Print: Tuesday 27 November 2012
COLOMBO - Sri Lanka
will sidestep U.S.-led sanctions against Iran by diverting its oil payments
towards a water management project that Tehran is funding in the island, a
senior official was quoted as saying on Sunday.
Two billion rupees ($15.38 million) owed
to Iran for oil will be used to finance the Uma Oya irrigation scheme, Sri
Lankan water resources secretary Ivan de Silva told the local Sunday
Times.
Iran had pledged some $450 million for
the water project in 2008 but implementation had been delayed due to lack of
cash.
"Because of the U.S. sanctions
there is a delay in transferring funds from Iran to Sri Lanka," Silva
said, adding that both governments had agreed to the deal.
The U.S.-led sanctions aimed at spurring
Tehran to abandon its civilian nuclear program have hurt Sri Lanka, which is
geared to refine only Iranian light crude.
Sri Lanka imported 92 percent of its
crude oil from Iran before the sanctions began earlier this year.
Tehran insists its nuclear program is
only for civilian use and refuses to abandon its uranium enrichment
activities.
(Source: AFP)
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Tuesday, November 27, 2012
Sri Lanka to divert oil payments owed to Iran to finance water project
