India gives $500 mn credit line to Sri Lanka

New Delhi, January 18

India on Tuesday announced a USD 500 million credit line to help Sri Lanka purchase petroleum products as the island nation struggles with a massive fuel and energy crisis.

The Indian High Commission here said External Affairs Minister S Jaishankar has agreed to offer critical support and the USD 500 million credit line in a letter to Sri Lankan Foreign Minister G L Peiris.

India is poised to provide another $1 billion in credit facility to Sri Lanka for importing food, essential items and medicines.

India had recently extended foreign exchange support of more than $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,” said the Indian High Commission in Colombo.

SL faces fuel crisis

• With this credit line, Sri Lanka will purchase petroleum products as the island nation struggles with a massive fuel and energy crisis
• India had recently provided $900 mn forex support; it is poised to extend $1 bn credit for food, medicine imports