Talks planned for India to restructure $1.3 bn credit line to Sri Lanka

Standard & Poor's has downgraded Sri Lanka's long-term foreign currency sovereign credit rating to selective default

India will hold talks with Sri Lanka for restructuring the island nation’s $ 1.3 billion line of credit (LOC), seeking to assist its southern neighbour battling a weeks-long economic crisis.

India’s government backs the LoC from Export Import Bank of India's (India EXIM Bank). The exact terms of the loan would be finalised in talks that the Indian government will conduct and EXIM Bank will participate in.

Repayments on credit have been done till the end of March 2022. The restructuring is likely to involve deferment on repayment principal, said sources in EXIM Bank.

In February 2022, India EXIM Bank