India on Wednesday extended a $500-million line of credit for purchasing petroleum products to Sri Lanka, currently grappling with its worst foreign exchange and energy crisis in decades.
India’s Export Import (Exim) Bank and the Sri Lankan government signed an agreement for the line of credit in the presence of Sri Lankan finance minister Basil Rajapaksa and Indian envoy Gopal Baglay. Rajapaksa has been coordinating his government’s efforts to seek financial assistance from India to tide over the crisis.
The Indian government’s support for fuel imports through the line of credit is in response to Colombo’s “urgent requirement”, the Indian high commission said in a statement.
The statement added this critical support was extended following a virtual meeting between external affairs minister S Jaishankar and Rajapaksa on January 15, during which they discussed a range of issues.
The Sri Lankan government decided on Tuesday to purchase 40,000 tonnes each of petrol and diesel from the Indian Oil Corporation.