Amid the country’s ongoing economic crisis, Sri Lanka is in talks with India for another লাই 500 million credit line for fuel imports.
The issue was discussed during a meeting between Sri Lankan High Commissioner to India Milinda Moragoda and Finance Minister Nirmala Sitharaman last week, the Daily Mirror reported.
In addition to the ল 500 million credit line previously extended, the report said.
Sri Lanka is facing its worst economic crisis since gaining independence in 1948. The reason for the recession is the lack of foreign exchange due to restrictions on tourism during the Covid-19 epidemic.
This left the country unable to buy adequate fuel, where people faced severe shortages of food and basic necessities, fuel and gas.
According to the Sri Lankan daily, India has offered a further 1 1 billion in loans for necessary imports. Of that, however, $ 200 million has been used for fuel imports, the report added.
According to the Daily Mirror, the island nation has so far exhausted about $ 700 million in Indian debt for diesel and petrol.
Sri Lankan Prime Minister Ranil Wickremesinghe on Friday praised India for extending support amid the ongoing economic crisis and expressed willingness to further strengthen ties between the two countries.
“I am grateful to our country for its support during this difficult time. I look forward to further strengthening the ties between our countries,” the Sri Lankan Prime Minister tweeted.
The praise for Indian Prime Minister Bikram Singh came on the same day when his neighbor donated 25 tonnes of medicines and other medical supplies worth 260 million Sri Lankan rupees.
The medical consignment was donated in response to requests from various organizations and hospitals spread across the country.
The Indian High Commission said that these humanitarian supplies are a continuation of the Government of India’s ongoing assistance to the people of Sri Lanka in multiple forms such as financial assistance, foreign exchange assistance, material supplies, etc.
The High Commission said in a statement that “these efforts bear witness to Prime Minister Narendra Modi’s ‘Neighborhood First’ policy which is based on people’s engagement with the people.”
(Except for the title, this story was not edited by NDTV staff and was published from a syndicated feed.)