Credit line

Govt. expects to finalize US$1 billion line of credit from India after Basil’s visit – Business News

  • State Minister Semasinghe says SL is talking with ME banks for US$2 billion

By Yohan Perera and Ajith Siriwardana
State Minister for Household Economics, Microfinance, Employment and Business Development, Shehan Semasinghe, answering a question posed by opposition leader Sajith Premadasa yesterday, confirmed that Discussions are currently underway with India to borrow an additional $1 billion.

“Finance Minister Basil Rajapaksa will finalize this facility soon,” he said.
Rajapaksa is expected to land in New Delhi for talks with his Indian counterpart Nirmala Sitaraman and Foreign Minister S. Jaishankar.
India has pledged Sri Lanka a US$500 million credit facility for oil and another US$1 billion facility for essentials such as food and medicine.

Meanwhile, Semasinghe said that in addition to Indian credit lines, the government is seeking funds from some Middle Eastern banks.
“The government is seeking credit facilities of up to $2 billion from a number of Middle Eastern banks,” he said.

Commenting on the government’s plans to bolster its foreign reserve position, Semasinghe expressed confidence in Sri Lanka recording $15 billion in exports this year and said plans were underway to send 300,000 Sri Lankans abroad with a view to increasing foreign remittances.

“We accept that there is a forex crisis, which was caused by the bad decisions made by all the governments that have run this country since 1977,” he said.

At the same time, the Minister of State said that the developments in Ukraine will have a negative impact on Sri Lanka, especially with regard to fuel supply.