India extends billion-dollar credit to Sri Lanka for one more year


India extended to Sri Lanka its one-billion-dollar credit line for another year to help the neighboring island, which is immersed in a serious economic crisis.

The continuity of the loan will enable the Sri Lankan Government to purchase food, medicines and other essential items for the people, the Indian high commission to Colombo said in a message on Twitter.

The Indian representation confirmed in its publication that with this step, New Delhi reaffirms its commitment to the Sri Lankan people.

The agreement, signed in March 2022, was extended to allow Sri Lanka to continue to import commodities, the Daily Mirror newspaper reported.

Sri Lanka will purchase urgent supplies of fuel, medicines, food and industrial raw materials in accordance with the Government’s requirements and priorities, it was learned after the virtual signing ceremony, which was attended by senior officials from both nations and the State Bank of India (SBI).

The extension is also part of India’s comprehensive assistance to Sri Lanka, totaling four billion dollars, in line with New Delhi’s Neighborhood First foreign policy.

Source: Lao News Agency