India has offered a new Line of Credit (LOC) of USD 500 million to Sri Lanka for purchase of petroleum products. External Affairs Minister Dr. S. Jaishankar extended this critical support in his letter addressed to the Foreign Minister of Sri Lanka, Prof. G.L. Peiris. India came to the support of Sri Lanka at a time when there is a power crisis due to lack of oil for power plants.
It would be recalled that in a landmark development, External Affairs Minister Dr. S. Jaishankar and Hon’ble Minister of Finance, Mr. Basil Rajapaksa held a detailed virtual meeting on January 15, 2022 and discussed various aspects of robust economic partnership between India and Sri Lanka. Early operationalization of the LOC will help realize one of the four pillars of economic cooperation identified during the visit of Hon’ble Minister of Finance, Mr. Basil Rajapaksa to India in December 2021.
Recently India had extended foreign exchange support of over USD 900 million to Sri Lanka. These measures are in line with India’s commitment to stand with Sri Lanka, contribute to Sri Lanka’s economic growth and impart greater momentum to bilateral economic and commercial partnership.