Sri Lanka warned of Iran oil embargo breach: report

COLOMBO (EconomyNext) – Sri Lanka has been warned about a suspected breach of an embargo on Iranian crude by involving state-run Ceylon Petroleum Corporation, a media report said.

Sri Lanka’s Daily Mirror newspaper said the US embassy in Colombo had written to the energy ministry saying a crude oil shipment to Sri Lanka on board the merchant ship F Whale is of Iranian origin.

The report quoted the letter as saying that a Singapore flagged vessel, Vardalalima had loaded crude in December from Kharg Island which had then been transferred to the second ship off Khor Fakkan. The first ship had then loaded another shipment.

Sri Lanka had been informed that the acceptance of the crude oil "tantamounts to a serious violation" of an undertaking given to the US and it can "damage the prevailing goodwill" between the two countries.

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