India provides $900 million loan to Sri Lanka

Tags: Economics/Business

India has announced a $900 million loan to Sri Lanka to build up its depleted foreign reserves and for food imports, amidst a shortage of almost all essential commodities in the island nation. The assistance has been provided by the RBI to Sri Lanka.

• The loan comprises deferment of Asian Clearing Union settlement of over $509 million and currency swap of $400 million.
• The  Governor of the Central Bank of Sri Lanka Ajith Nivard Cabraal has said that the loan amount will be used by Sri Lanka to import foods.
• Sri Lanka is currently experiencing a shortage of almost all essentials due to a shortage of dollars to pay for the imports.