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India offers $500m line of credit to Sri Lanka for fuel

India has offered a new line of credit (LC) of $500 million to Sri Lanka for the purchase of petroleum products.

India’s Foreign Minister, Dr S. Jaishankar, gave this vital support in his letter to Sri Lanka’s Foreign Minister, Prof GL Peiris, the Indian High Commission in Colombo said today.

“It should be recalled that in a historic development, the Minister of External Affairs, Dr. S. Jaishankar, and the Minister of Finance of Sri Lanka, Mr. Basil Rajapaksa, held a detailed virtual meeting on January 15, 2022 and discussed various aspects of a strong economic partnership between India and Sri Lanka.

“The rapid operationalization of the LOC will help realize one of the four pillars of economic cooperation identified during the visit of the Minister of Finance, Mr. Basil Rajapaksa to India in December 2021,” the statement said.

Recently, India provided foreign exchange assistance of over $900 million to Sri Lanka.

These steps are in line with India’s commitment to stand by Sri Lanka, contribute to Sri Lanka’s economic growth and give greater impetus to the bilateral economic and trade partnership, the High Commission said. from India.