India set to extend additional $500m line of credit to import fuel

Sri Lanka has requested an additional $500 million line of credit from India to import fuel.

A spokesperson for the Indian High Commission in Colombo confirmed yesterday that the matter was under discussion.

Previously, a $500 million line of credit agreement for the supply of petroleum products was signed between the government of Sri Lanka and EXIM Bank of India on February 2, 2022. Over 384,000 tons of various types of fuel were provided under this credit. Line.

The overall economic aid provided to Sri Lanka by the Indian government this year alone in the midst of an unprecedented economic crisis amounts to around $3.5 billion.

A USD 400 million currency swap was extended to the Central Bank of Sri Lanka (CBSL) by the Reserve Bank of India (RBI) in January 2022.

In addition, a Billion Dollar Credit Facility Agreement was signed between the Government of Sri Lanka (GOSL) and the State Bank of India (SBI) on 17 March 2022 for the provision of food, medicine, fuel and industrial raw materials.

This facility has helped the people of Sri Lanka meet their various needs.

Meanwhile, the Reserve Bank of India has deferred payments worth over USD 1.5 billion to CBSL under the Asian Clearing Union as a means of currency support

India has also extended its support to farmers in Sri Lanka through a special facility of USD 55 million for the purchase of urea fertilizers. The agreement was signed on June 10, 2022.

India also donated medicines worth SLR 370 million and provided kerosene to the fishermen of Sri Lanka. And also provided 9,000 tons of rice and 50 tons of powdered milk to be distributed across Sri Lanka.

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