In A First, India Working To Extend $50 Million Line Of Credit To Sri Lanka For Defence PurchasesPM Modi with Sri Lankan PM Mahinda Rajapaksa (Representative Image) (Pic Via Twitter)

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.

India plans to supply military hardware and equipment to Sri Lanka. And this plan to extend a $50 million LoC would mark a first such instance in the rich history shared by the two nations. The development comes as an outcome of the recently held virtual summit held between the two nations.

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.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber