India Extends $1 Billion Credit Line To Sri Lanka

India today extended a $1 billion credit line to Sri Lanka. At a time when the island nation is facing an economic and energy crisis, this credit line will help Lanka to procure food, medicines and other essential items.

The agreement was signed during Sri Lankan Finance Minister Basil Rajapaksha's visit. Its was signed between the State Bank of India (SBI) and the Government of Sri Lanka.

Before the agreement was signed, Rajapaksa held meetings with Finance Minister Nirmala Sitharaman and External Affairs Minister S Jainshankar. During these meetings they discussed issues of mutual interest and economic cooperation.

A day earlier, the Lankan Finance Minister met Prime Minister Narendra Modi and thanked him for extending support to the Lankan economy.

PM Modi spoke about the central role that Sri Lanka occupies in India’s ‘Neighbourhood First’ policy and its S.A.G.A.R (Security and Growth for all in the Region) doctrine. Modi reiterated that India would continue to stand with the friendly people of the neighbouring country.

Sri Lanka has witnessed its currency getting devalued significantly. It also facing crippling fuel and gas shortages, plus daily electricity cuts.

India provided more than USD 500 million in foreign currency swaps to strengthen Sri Lanka’s foreign reserves, taking the total up to USD 900 million. India also extended the repayment time frame for the USD 500 million debt of Sri Lanka under the Asian Clearance Arbitration.

(With inputs from ANI.)