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The curious case of $1-billion SBI loan to debt-ridden Sri Lanka

SBI has been designated by the RBI as one among the domestic systemically important banks (D-SIBs)

Sri Lanka
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People carry empty cylinders to buy domestic cooking gas in Colombo, amid the economic crisis in Sri Lanka | Photo: file/ Reuters

Manojit Saha Mumbai
The Ministry of External Affairs (MEA) on March 17 had announced that State Bank of India (SBI) would extend a term loan of $1 billion to Sri Lanka, fully guaranteed by the Indian government, and this was part of India’s financial aid to the troubled island nation.

Ministry of External Affairs (MEA) Spokesperson Arindam Bagchi was quoted saying by news agency PTI that the loan would be used for importing food, medicines, and other essential items.

“India has always stood with the people of Sri Lanka and we will continue to extend all possible support at this juncture. I think
Topics : sri lanka

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First Published: May 24 2022 | 6:10 AM IST

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