"Iraq will purchase 6,000 MT of Sri Lanka tea under the 6th phase of the UN oil for food programme...Sri Lanka is prepared to purchase 120,000 MT of Basra light crude oil from Iraq," the two countries said in a joint statement.

The United Nations programme allows Baghdad to sell $5.26billion worth of oil over six months to buy food, medicine and other humanitarian needs of the Iraqi people under sweeping U.N. sanctions imposed after Iraq's 1990 invasion of Kuwait.The statement came after visiting Iraqi Trade Minister Mohammed Mehdi Saleh held discussions with his Sri Lankan counterpart Kingsley Wickramasinghe following the meeting of a joint trade, scientific and technical cooperation committee.

The statement said Iraq had bought 1,700 tonnes of tea from Sri Lanka under the fifth phase of the UN programme.Baghdad had allocated some three million kilograms of tea from Sri Lanka under phase five of the pact which ended in May.

Sri Lankan officials had said ahead of Saleh's visit that they would push for more tea exports to Iraq under the current phase of the U.N. deal.

Prior to the 1990 Gulf War, Iraq was among Sri Lanka's top buyers, accounting for about 20 percent of tea exports. Iraq used to buy some 40 to 45 million kilograms of tea annually, of which 60 to 70 percent came from Sri Lanka.

The statement said the visiting delegation would also sign a joint cooperation agreement with the Federation of Chambers of Commerce and Industry of Sri Lanka on behalf of Iraq's Federation of Chamber of Commerce to develop and strengthen economic and commercial relations.