Sri Lanka To Obtain Loan Worth $500 Million From India For Fuel PurchaseSri Lanka 

Sri Lanka has sought a $500 million credit line from India to pay for its crude oil purchases as the nation is going through a severe foreign exchange crisis.

The country’s state-owned Ceylon Petroleum Corporation (CPC) owes about $3.3 billion to its government banks, namely: People’s Bank and Bank of Ceylon.

Sri Lanka’s energy minister Udaya Gammanpila has warned that the current availability of fuel in the island nation can be guaranteed only until January 2022.

Their state oil distributors import crude from the middle-eastern countries.

“We are currently engaged with the Indian High Commission here to obtain the facility (USD 500 million credit line) under the India-Sri Lanka economic partnership arrangement,” Sumith Wijesinghe, Chairman of the CPC, was quoted by the Financial Express.

This facility will now be utilised for purchasing their requirements for petrol and diesel.

The island nation’s Finance Secretary S R Attygalle informed that the energy secretaries of India and Sri Lanka are slated to sign an agreement for the loan soon.

In the meantime, the Lankan government has halted the expected retail price hike of fuel though they increased the prices of cooking gas and other essentials last week.

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
Advertisement