India extends USD 500 million loan to Sri Lanka

Tags: Economics/Business

India has extended a $500-million Line of Credit (LOC) to Sri Lanka for urgent fuel imports, just days after providing $900 million relief to the island nation, which is facing one of its worst economic downturns.

• The announcement followed a virtual meeting between Dr. Jaishankar and Sri Lanka’s Finance Minister Basil Rajapaksa on 15 January 2022.
•  In the meeting they reviewed a $1.5 billion credit facility by India  to help Sri Lanka augment its fast-depleting foreign reserves, crucial to importing essential food items, medicines, and fuel.