A high-ranking delegation from Sri Lanka is in Iraq to discuss the resumption of the once important tea trade.

Before the invasion of Kuwait in 1990, Iraq bought about one-fifth of all tea exported from Sri Lanka.

After sanctions were eased, some tea was again sold, but only through a third party.

The Sri Lankan delegation to Baghdad, which includes the Trade Minister, the chairman of the Tea Board and other tea exporters, aims to win back the lucrative tea contracts.

It will be in Baghdad for a week and it is due to attend a trade fair.

The United Nations counts tea as a foodstuff, which member countries are therefore allowed to sell to Iraq under the oil for food programme.

An American official in Colombo said that provided the deals were referred through the proper channels, they didn't have a problem with tea going to Baghdad.

The deputy trade minister, Mr YP de Silva, said the delegation would be exploring the possibilities of a trade agreement through all legal avenues.

The sale of tea to Iraq would help to compensate for the loss of sales to Russia - Sri Lanka's largest buyer - following the near collapse of its economy.

However some western analysts have warned that Iraq is keen to encourage such high level visits simply for propaganda purposes.