COLOMBO, Oct. 13 -- Sri Lanka's Laugfs Gas has announced that it is halting operations of its Dubai-based unit, SLOGAL Energy DMCC, pending a compliance review, after the US Treasury's Office of Foreign Assets Control (OFAC) listed the company for allegedly trading in Iranian petrochemicals.

According to OFAC, SLOGAL Energy DMCC was involved in the purchase and sale of Iranian-origin gas to Sri Lanka and Bangladesh, raising concerns under US sanctions.

In a statement filed with the Colombo Stock Exchange, Laugfs Gas emphasized that the company has never knowingly engaged in trade involving sanctioned entities or products of sanctioned origin. "All our commercial transactions have been conducted in accordance with international trade pra...