Sri Lanka Requests Another $1 Billion In Credit Line From India: Report

Sri Lanka has sought an additional credit line of $1 billion from India to import essentials, Reuters reports.

A source in the know of developments revealed that New Delhi will be meeting Colombo’s request for the new line.

This amount will be used to import items such as wheat flour, pulses, medicines, sugar, rice, etc.

Sri Lankan Finance Minister Basil Rajapaksa had travelled to India this month to sign a credit line of $1 billion to help pay for important imports for the island nation.

Earlier this year, India had also extended a $400 million currency swap and $500 million credit line to Sri Lanka for their fuel purchases as well.

The crisis-hit country is slated to repay debt worth around $4 billion in the rest of this year. Hence, Sri Lankan finance minister will be flying to Washington D.C. in April to initiate talks with the International Monetary Fund (IMF) over a rescue plan.

Meanwhile, they are negotiating $2.5 billion in credit support from China too.

External Affairs Minister met the Sri Lankan President Gotabaya Rajapaksa in Colombo on Monday and reassured him of India’s ‘continued cooperation and understanding.’