India Extends USD 1 Billion Concessional Credit Facility To Sri Lanka

Mar 18, 2022, 17:58 IST

NEW DELHI: India has extended a one billion dollar concessional credit facility to Sri Lanka as part of its financial assistance to help the island nation deal with its severe economic crisis.

As per reports in the AIR News, the signing ceremony took place in Delhi yesterday in the presence of visiting Sri Lankan Finance Minister Basil Rajapaksa, Finance Minister Nirmala Sitharaman, External Affairs Minister Dr. S Jaishankar among others. This will be used for importing food, medicine, and other essential items from India.

External Affairs Ministry spokesperson Arindam Bagchi said India has always stood with the people of Sri Lanka and will continue to extend all possible support at this juncture. He said India is cognizant of the economic difficulties that the country is facing. He said both sides understand the benefit of closer economic engagement.

Neighborhood first. India stands with Sri Lanka.

US$ 1 billion credit line signed for supply of essential commodities.

Key element of the package of support extended by India. pic.twitter.com/Fbzu5WFE3n

— Dr. S. Jaishankar (@DrSJaishankar) March 17, 2022

Visiting Sri Lankan Finance Minister Basil Rajapaksa witnessed the signing of the agreement for the USD 1 billion line of credit being extended through the State Bank of India (SBI).

Last month, India extended a USD 500 million line of credit to Sri Lanka to help it purchase petroleum products as the island nation has been reeling under a severe foreign exchange and energy crisis. "The USD 1 billion loan facility, which formed the key component of the four-pillar economic cooperation arrangement agreed between India and Sri Lanka during Minister Rajapaksa's visit to New Delhi in December last year, was extended to the government of Sri Lanka for procurement of food, medicines and other essential items," the Sri Lankan high commission said in a statement.

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