India commits over $3 bn to Lanka

India has committed more than $3 billion to debt-ridden Sri Lanka in loans, credit lines, and credit swaps since January this year, the Indian High Commission said, as the island nation faces its worst economic crisis since independence.

Beginning this week, India had extended credit by a further $200 million to replenish Sri Lanka’s rapidly depleting fuel stocks.

The $1 billion credit facility for the purchase of food, medicines, and other essential commodities is already operational,” a statement from the Indian High Commission said, adding that around 16,000 metric tonnes of rice supplied by India are also being distributed.

“A separate Line of Credit of $500 million for the purchase of petroleum products, such as diesel, petrol, and aviation fuel has paved the way for the delivery of nine consignments of different types of fuel,” it said.

Overall economic assistance which stands a shade above $3 billion in 2022 alone has been of various kinds – $1 billion credit line for essentials; $500 million credit line for the purchase of petroleum products; $400 million bilateral currency swap; and over $1 billion under the Asian Clearing Union Framework.

Image courtesy of thesatimes

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