India to increase US$ 500 m fuel credit line by $ 250 m

The Indian government, coming to Sri Lanka’s rescue, has agreed to increase the US$ 500 million credit line granted to Sri Lanka for the purchase of fuel considering the present economic situation in the country, Finance Ministry sources said.

Accordingly the$500 million credit facility has been increased to $750 million as the country needs at least $500 million to import fuel stocks sufficient for a month.

Arrangements are now being made to extend the Indian credit facility following a request made by Finance Minister Basil Rajapaksa when he met the visiting Indian External Affairs Minister Dr. S. Jaishankar in Colombo on Monday.

India has previously offered Sri Lanka a credit line of $500 million dollars to buy petroleum products, the Indian High Commission in Colombo said.

The Indian Minister had sent a letter to Sri Lanka’s Foreign Minister G L Pieris extending the offer.

The credit line will come from the Exim Bank of India, a senior Finance Ministry official said.

“These measures are in line with India’s commitment to stand with Sri Lanka, contribute to Sri Lanka’s economic growth and impart greater momentum to bilateral economic and commercial partnership” the Indian High Commission statement said. (Bandula)