India to extend Sri Lanka’s 1 bn dollar credit line by a year

Colombo: India on Tuesday extended its under-utilised USD 1 billion credit line to Sri Lanka for another year to help the island nation hit hard by an unprecedented economic crisis procure much-needed food, medicine and other essential items.

An agreement was signed between the State Bank of India (SBI) and the Sri Lankan government for USD 1 billion credit facility in March last year. India extended the credit line to Sri Lanka at the height of the country’s economic crisis.

“India reaffirms its commitment to the people of Sri Lanka. The Amendment Agreement signed in presence of Hon.Minister @ShehanSema today will enable Sri Lanka to use the USD 1 billion Indian credit facility for the procurement of medicine, food, and other essentials for one more year,” the Indian High Commission in Sri Lanka tweeted.

“Beyond the original duration, that is, till March 2024. The facility was extended by India through @TheOfficialSBI in response to a specific request from GOSL and forms a part of the multi-pronged assistance of USD 4 billion provided by India last year,” it said.