May 31, 2022
2 mins read

SL seeks another $500mn credit from India

Sri Lanka is facing its worst economic crisis since gaining independence in 1948. The recession is attributed to foreign exchange shortages caused by a clampdown on tourism during the COVID-19 pandemic….reports Asian Lite News

Amid the continuing economic crisis in the country, Sri Lanka is in talks with India for another credit line of USD 500 million for fuel imports.

This issue was discussed when Sri Lankan High Commissioner to India Milinda Moragoda met with Indian Finance Minister Nirmala Sitharaman last week, Daily Mirror newspaper reported.

The credit line is in addition to USD 500 million extended previously, the report said.

Sri Lanka is facing its worst economic crisis since gaining independence in 1948. The recession is attributed to foreign exchange shortages caused by a clampdown on tourism during the COVID-19 pandemic.

It left the country unable to buy enough fuel, with people facing an acute scarcity of food and basic necessities, fuel, and gas.

According to the Sri Lankan daily, India offered another USD 1 billion line of credit for essential imports. However, USD 200 million of it has been utilized for fuel imports, the report added.

The island nation has exhausted nearly US 700 million of Indian credit so far for diesel and petrol, Daily Mirror reported.

Sri Lankan Prime Minister Ranil Wickremesinghe on Friday praised India for extending support amid the continuing economic crisis and expressed a desire to further strengthen ties between the two nations.

“I expressed our country’s appreciation for the support India has extended during this difficult period. I look forward to further strengthening ties between our nations,” the Sri Lankan PM tweeted.

Wickremesinghe’s appreciation of India came on the same day when its neighbour donated 25 tons of drugs and other medical supplies valued at close to SLR 260 million.

The medical consignment was donated in response to requests by various organizations and hospitals spread across different parts of the country.

The Indian High Commission said these humanitarian supplies are in continuation of the Indian government’s ongoing support to the people of Sri Lanka in multiple forms such as financial assistance, forex support, material supply etc.

“These efforts testify to Prime Minister Narendra Modi’s ‘Neighbourhood First’ policy which places people-to-people engagement at its core,” the high commission said in a statement. (ANI)

ALSO READ: World Bank approves $700 million to support Lanka

Previous Story

Tips to be healthy after long journey

Next Story

CCP’s paranoia over Xinjiang revealed in leaked police files

Latest from -Top News

Pakistan’s Shadow War in Balochistan

At least 50 killed by Pakistan-backed death squads in Balochistan in April, says HRCB — toll expected to rise in May….reports Asian Lite News The Human Rights Council of Balochistan (HRCB) reported

Russia, Ukraine Resume Talks

The upcoming talks follow a significant hiatus in diplomatic engagement between the two nations, which have been locked in a brutal conflict since Russia’s invasion of Ukraine in February 2022 Russia and

UN Pays Tribute to Indian Soldiers

Thursday was observed as the 77th UN Peacekeepers Day, honouring the work of 61,353 peacekeepers, of whom 5,375 hailed from India….reports Asian Lite News Brigadier Amitabh Jha and Havildar Sanjay Singh, who

Modi’s New Warfare Playbook

Modi has upended the old playbook and India and Pakistan are entering dangerous new territory where nuclear deterrence is no longer a guarantee against conventional conflict…writes Collins Chong Yew Keat The India-Pakistan
Go toTop

Don't Miss

700k int’l tourists visited Sri Lanka in 2022

Based on the data released by the Sri Lanka Tourism

Lanka seeks IMF bailout

Sri Lanka has been undergoing a serious economic crisis and