Sri Lanka, Feb. 22 -- Colombo, Feb 22 () - Sri Lanka and Iran are exploring the possibility of expanding trade in oil bypassing the U.S. sanctions, an informed source said. Iran is facing difficulties in trading goods after the US unleashed its "toughest ever" sanctions against that country over the nuclear deal.

Iranian Foreign Affairs Minister Hossein Amir Abdollahian who was in Sri Lanka is reported to have discussed the matter with the Sri Lankan leaders during his interactions with them.

An informed source familiar with what transpired during talks said some oil transactions take place through third parties, but the two decided to explore the possibility of expanding trade despite U.S. sanctions.

An informed source familiar with w...