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Sri Lanka hits out against U.S. sanctions on Iran

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A Sri Lankan minister has hit out against American sanctions on Iran that are preventing the government from accepting development financing from Teheran.

 

The Obama administration reissued waivers last week that exempt nine countries, including China, India, Sri Lanka and Turkey, from fully complying with U.S. sanctions targeting Iran's oil exports.


However these loopholes do little to allow the Sri Lankan government to obtain funding from Iran for poverty alleviation and power distribution programs financed by Iran.

 

A statement issued by the Power and Energy Ministry quoted Minister Champika Ranawaka as strongly criticizing American sanctions as they "infringe on the rights of the poor in Sri Lanka. "

During discussions with Iranian and Russian ambassadors to Sri Lanka, Ranawaka pointed out that as many as 1,000 rural electrification projects have been put on hold due to inaccessibility of financing from Tehran.

 

"U.S. sanctions against Iran are infringing on the basic rights of our people. Iran has a right to proceed with its nuclear program with peaceful intentions to meet its domestic needs. This is something that 45 other countries are also doing and is a right of Iran," he had told Iranian ambassador Dr. Mohammad Nabi Hassani Pour.


He also made similar comments to the Russian ambassador.

 

Before American sanctions, Sri Lanka imported as much as 90 percent of its oil from Iran and refined it in a plant funded by Iran.


However, even though America has given limited relief, the Sri Lankan government is struggling to utilize it since banks are reluctant to open letters of credit and provide insurance for fear of being blacklisted by the United States.

 

The finance ministry has estimated that Sri Lanka would have to expend at least 1.5 billion U.S. dollars extra to meet oil bills from Saudi Arabia and Oman. The island has no oil reserves of its own and depends entirely on imports.

 

http://news.xinhuanet.com/english/world/2012-12/14/c_132039493.htm

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