You are here: Home » International » News » Economy
Business Standard

India extends credit, fuel, food to bail Sri Lanka out of economic crisis

India on Saturday delivered 40,000 MT of diesel to Sri Lanka to help ease the power crisis in the island country which is witnessing acute power cuts.

Topics
sri lanka | India-Sri Lanka

ANI 

Sri Lankans participate in a protest demanding president Gotabaya Rajapaksa resign, before the beginning of curfew in Colombo, Sri Lanka, Saturday, April 2, 2022.  (AP Photo/Eranga Jayawardena)
Sri Lankans participate in a protest demanding president Gotabaya Rajapaksa resign, before the beginning of curfew in Colombo, Sri Lanka, Saturday, April 2, 2022.  (AP Photo/Eranga Jayawardena)

is reeling under a deep economic crisis as the country's foreign reserves have been depleted and the Rajapaksa government is struggling to pay for the import of fuel.

As a result, there is an acute power shortage in the country and violent protests are being reported. The government has declared an emergency and a countrywide 36-hour curfew has been imposed due to the protest on Sunday as of now around 600 protesters have been arrested.

In these difficult times, India has come forward to bail the island nation out of the crisis. India has responded to urgent requests from with promptness.

"Since January this year, support from India to exceeds USD 2.5 billion. A fuel line of credit of USD 500 million was signed in February. Four consignments totaling over 150,000 tons of jet aviation fuel, diesel and petrol have since arrived beginning in March. Five more consignments are to follow till May. Another line of credit of USD 1 billion for food, medicine and essential items was signed last month," Gopal Baglay India's High Commissioner to Sri Lanka told ANI.

"The first consignment of rice from India is expected to arrive in Sri Lanka shortly under this credit facility," Bagley added

Besides, the Reserve Bank of India has extended a currency swap of USD 400 million and deferred payments owed by the Central Bank of Sri Lanka under the Asian Clearance Union worth several hundred million dollars.

Indian High Commissioner to Sri Lanka said: "These facilities, negotiated and concluded within a matter of weeks, have proved to be the lifeline for the people of Sri Lanka at a time when financing of imports by Sri Lanka is difficult due to the balance of payment situation."

"India's prompt assistance for the people of Sri Lanka at this hour has been appreciated by all sections of the Sri Lankan society" the Indian high commissioner to Sri Lanka added.

India on Saturday delivered 40,000 MT of diesel to Sri Lanka to help ease the power crisis in the island country which is witnessing acute power cuts.

A part of the US 500 million oil line of credit (LoC) extended by India to Sri Lanka, this is the fourth consignment of fuel delivered from India to Sri Lanka under the LoC. Further, India has supplied around 200,000 MT of fuel to the island nation over the last 50 days.

Sri Lanka's has been in a free fall since the COVID-19 pandemic due to the crash of the tourism sector.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sun, April 03 2022. 12:29 IST
RECOMMENDED FOR YOU
.