In A First, India Working To Extend $50 Million Line Of Credit To Sri Lanka For Defence Purchases

In a fillip to the already deepening thaw between India and Sri Lanka, the former is working on a plan to extend a $50 million Line of Credit (LoC) to Sri Lanka to be spent on defence purchases from India, reports Economic Times.

The development comes to play at a time when both nations are planning to institute a robust counter-terrorism framework. The two nations have also increased intelligence cooperation on the high seas, enabling Sri Lanka to crack down on the drug mafia which is known to fund terrorism in the island nation.

During the summit, Sri Lankan Prime Minister Mahinda Rajapaksa expresses gratitude to India for the help received from the Indian security establishment, specifically with regards to the alerts shared by India on the terrorist threats to Sri Lanka, including the devastating Easter Sunday attacks which had rocked the nation.

Meanwhile, it should be noted that the only other nation to have received an LoC for defence purchases in the past is Bangladesh. Bangladesh was extended a $500 million LoC a few years ago and its implementation is in progress.