India offers $500 million credit line to Sri Lanka for fuel purchase

India has offered a new Line of Credit (LOC) of USD 500 million to Sri Lanka for purchase of petroleum products. 

India’s External Affairs Minister Dr. S. Jaishankar extended this critical support in his letter addressed to the Foreign Minister of Sri Lanka, Prof. G.L. Peiris, the Indian High Commission in Colombo said today.

“It would be recalled that in a landmark development, External Affairs Minister Dr. S. Jaishankar and Sri Lanka’s Minister of Finance, Mr. Basil Rajapaksa held a detailed virtual meeting on January 15, 2022 and discussed various aspects of robust economic partnership between India and Sri Lanka.” 

“Early operationalization of the LOC will help realize one of the four pillars of economic cooperation identified during the visit of Minister of Finance, Mr. Basil Rajapaksa to India in December 2021,” the statement said.

Recently India had extended foreign exchange support of over USD 900 million to Sri Lanka. 

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 India High Commission said.

🇮🇳 extended forex support of USD 900 million was earlier this month. (2/2)

— India in Sri Lanka (@IndiainSL) January 18, 2022