Sri Lanka, India to ink agreement for USD 500 million credit line later today

The agreement for a credit line of USD 500 million from India for the purchase of petroleum products will be signed this evening, Ada Derana learns.

This credit line is expected to help resolve the country’s ongoing power crisis.

India’s External Affairs Minister Dr. S. Jaishankar had extended this critical support in a letter addressed to his Sri Lankan counterpart, Foreign Minister Prof. G.L. Peiris.

In a statement issued in this regard, the Indian High Commission in Colombo said: “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,” it added.

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

The Indian High Commission has noted that 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.