Sri Lanka, India’s EXIM Bank ink deal for USD 55 Mn loan to procure urea

Sri Lanka today inked a Line of Credit (LOC) agreement of USD 55 million with the Export-Import (EXIM) Bank of India for the purchase of 65,000 metric tonnes of urea fertilizer required for the Yala Season.

The document was signed by the Secretary to the Finance Ministry and General Manager EXIM Bank of India, in the presence of Prime Minister Ranil Wickremesinghe, Minister of Agriculture Mahinda Amaraweera, Indian High Commissioner to Sri Lanka Gopal Baglay and other senior officials from both sides.

In response to an urgent request from the Sri Lankan government, the Indian government decided to extend an LOC of USD 55 million to Sri Lanka for the procurement of urea fertiliser.

This LOC will help Sri Lanka secure urea fertilizer for the ongoing paddy sowing in the Yala season.

In view of the critical requirement, Sri Lankan government and the EXIM Bank have agreed to complete all procurement procedures expeditiously so that urea supplies can reach Sri Lanka in a short span of time.

During the signing ceremony, PM Wickremesinghe expressed his gratitude to India for the timely assistance.

The High Commissioner highlighted that the speedy finalization of the LOC testifies to the importance Indian government attaches to the welfare of the people of Sri Lanka. 

It may be recalled that in line with its ‘Neighbourhood First’ policy and as an earnest friend and partner of Sri Lanka, India has extended multi-pronged assistance to the people of Sri Lanka in the last few months, the Indian High Commission in Colombo said in a statement.

The support from India ranges from economic assistance of close to USD 3.5 billion to helping secure Sri Lanka’s food, health and energy security by supplying essential items like food, medicines, fuel, kerosene etc.