India extends $1 billion credit line to Sri Lanka till March 2024

Tags: International Relations International News

India on May 30 extended its $1 billion line of credit to Sri Lanka till March 2024 to help purchase essential food, medicine and other essential commodities as Sri Lanka grapples with an unprecedented economic crisis.

An overview of the news

• This agreement is an important step towards continuation of financial assistance provided by the Indian side to the Sri Lankan Government for procurement of essential items.

• The signing ceremony took place in the presence of Sri Lanka's Minister of State for Finance, Shehan Semasinghe, senior officials from Sri Lanka's Ministry of Finance and representatives of the Indian High Commission in Colombo.

• The credit line was extended last year when Sri Lanka was passing through its worst economic crisis.

• The facility has been instrumental in prompt procurement of critical supplies such as fuel, medicines, food items and industrial raw materials for the island nation.

• This extension of financial assistance further underscores the strong commitment of the Government of India as it continues to assist Sri Lanka with a comprehensive package of approximately USD 4 billion in line with India's 'Neighbourhood First' policy.

About sri lanka

• The Democratic Socialist Republic of Sri Lanka is a tropical island nation located off the southeast coast of the Indian subcontinent.

• Sri Lanka is separated from the Indian subcontinent by the Gulf of Munnar and the Palk Strait.

• Capital: Colombo (Executive and Judicial) and Sri Jayawardenepura (Legislative).

• Official languages: Sinhala and Tamil

• President – Ranil Wickremesinghe

• Prime Minister – Dinesh Gunawardena

• Currency: Sri Lankan Rupee