Iran wants Lankan banks in Tehran:

Looking for JVs with local companies

Iran and Sri Lanka should enhance Business to Business (B2B) level cooperation further. Linkages between Business Chambers in both countries are the key to achieve this, said Industry and Commerce Minister Rishad Bathiudeen at a meeting with Iran’s new Ambassador to Sri Lanka Mohammad Nabi Hassanipour last week. Hassanipour was making his first courtesy call on Minister Bathiudeen, leading to an in-depth discussion of bilateral trade aspects.

“I warmly welcome you to Sri Lanka. I have been given to understand that Your Excellency as one of the most experienced Ambassadors in the Iranian diplomatic corps which greatly strengthens our bilateral relations” Minister Bathiudeen said.

“Both countries have long historic relations, in that Iranian traders have been visiting Sri Lanka for centuries. Currently our total bilateral trade stands at $ 890 million,” Minister Bathiudeen added and said: “I also refresh my previous invitation to high level Iranian delegations to Sri Lanka Expo 2012, the mega show to be held after 15 years in Colombo.”

According to the Commerce Department, trade between Sri Lanka and Iran has continued to show a positive trend since 2001 despite the balance of trade between two countries has heavily and continuously been in favour of Iran over the years. According to the Customs data, Iran was Sri Lanka’s fourth import destination in 2010. The current total trade between both countries stand at $ 890 million.

According to Commerce Department, Ceylon Tea in bulk has been Sri Lanka’s major export item to Iran, while coconut remains as the second export item. Other Export items are cashew, trailers, palm oil, tyres and activated carbon. Petroleum oils remain as the most important item of import from Iran. Other key imports are wheat, urea, palm oil and food preparations.

“Sri Lanka is now on a strong track of development and it stands out among the developing countries, especially among Asian countries” said Hassanipour addressing Minister Bathiudeen. “Sri Lanka also offers many opportunities in its new peaceful era.

Our private sector is keen to enter Sri Lanka using the joint venture model and our companies are keen for JVs with Sri Lankan companies.

Our private sector is keen on JVs in Sri Lanka’s infrastructure, pharmaceutical and healthcare sectors” Hassanipour indicated.

“I also invite more and more Sri Lankan banks to expand into Iran and begin operations there. Iran is keen to resume direct flights with Sri Lanka and also wants to open direct commercial shipping with Colombo thereby strengthening bilateral shipping cooperation” Hassanipour added.

“I also see that there is a need to increase the capacity of Sri Lanka’s oil refining and I believe the Sri Lankan refinery needs an extension. Iran is also looking at conducting single country format “Iranian Trade Fairs” in Colombo.”

Both Ambassador Hassanipour and Minister Bathiudeen also explored preliminary groundwork towards the next session of bilateral Joint Economic Commission meeting to be held in Tehran in 2012. Both countries have already expressed their interest to this end especially when the Iranian Foreign Affairs Vice-Minister Seyyed Amir Mansour Borghai took part in a special dinner meeting hosted by Minister Bathiudeen in July at Cinnamon Grand, Colombo.