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Friday July 1st, 2022

India gives Sri Lanka US$500mn credit line for fuel

ECONOMYNEXT – India has offered Sri Lanka a credit line of 500 million dollars to buy petroleum products, the Indian High Commission (embassy) in Colombo said.

External Affairs Minister S Jaishankar had sent a letter to Sri Lanka’s Foreign Minister G L Pieris extending the offer.

The credit line will come from the Exim Bank of India, a source who is aware of the matter said.

“These measures are in line with India’s commitment to stand with Sri Lanka, contribute to Sri Lanka’s economic growth and impart greater momentum to bilateral economic and commercial partnership” the statement said.

“Early operationalization of the LOC will help realize one of the four pillars of economic cooperation” discussed during a visit by Sri Lanka’s Finance Minister Basil Rajapaksa to India in December 2021, the statement said.

Sri Lanka is facing difficulties in importing oil due to forex shortages.

India has already given a 400 million US dollar swap to Sri Lanka and deferred the settlement of 512 million US dollars of cross-border settlements by two months.

Sri Lanka has also sought a billion US dollar credit line from food and medicines. (Colombo/Jan18/2021)

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