News
Lanka seeks credit line now from Russia
Sri Lanka is seeking a credit line of US$ 300 to 400 million from Russia to buy military equipment for the armed forces and the Sri Lanka Police. The deal is to be finalised following ongoing discussions between Russian authorities and Sri Lankan embassy officials in Moscow, government sources said.
Also included in the deal is sharing of combat experience, they said. Finance Ministry officials have confirmed the deal adding that this was brought to the notice of the ministry by R. Paskaralingam, Advisor to the Ministry of National Policy Planning and Economic Affairs.
The sources, who declined to be identified, said the Cabinet Committee on Economic Management (CEM) had given its approval recently to obtain the Russian credit line and strengthen economic ties with Russia as a matter of priority.
There is no Russian credit line for Sri Lanka at present but the country has entered into several bilateral agreements with Russia in the past. Russia provided assistance to meet post-conflict challenges, including the provision of relief items and US$ 500,000 through the United Nations High Commission for Refugeess (UNHCR).
Russia has given an assurance to Sri Lanka that it will provide assistance for the restoration of peace and reconstruction and for expeditious relief to a large number of internally displaced people, the sources said.