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Sri Lanka Receives Another Diesel Shipment Under Indian Line of Credit

A consignment of 40,000 metric tons of diesel purchased as part of Indian aid through a $500 million line of credit arrived in Sri Lanka today (April 2).

The diesel cargo was ceremonially handed over by Indian High Commissioner Gopal Baglay to Energy Minister Gamini Lokuge in Colombo.

This is the fourth shipment of fuel Sri Lanka has received under India’s line of credit, with previous deliveries on March 16, March 20 and March 23 respectively.

With today’s shipment, the total fuel delivered to Sri Lanka over the past 50 days amounts to almost 200,000 metric tons, including a shipment of 40,000 metric tons by Indian Oil Corporation outside the line of credit in February this year, the Indian High Commission in Colombo said in a statement.

Speaking on the occasion, High Commissioner Gopal Baglay called the fuel deliveries a concrete manifestation of India’s commitment to the people of Sri Lanka under the current circumstances, in line with the neighborhood first policy. .

Energy Minister Gamini Lokuge meanwhile expressed his gratitude to the Indian government for the fuel deliveries.

Earlier, on March 23, Sri Lankan Prime Minister Mahinda Rajapaksa thanked Prime Minister Narendra Modi for India’s recent economic development aid and credit facilities to Sri Lanka, saying he expected the Indian government pays special attention to the development of Sri Lanka in the future while well.

It should be recalled that the Export Import Bank of India and the government of Sri Lanka signed on February 2 a credit line agreement of 500 million US dollars for the purchase of petroleum products. The deal was signed by Treasury Secretary SR Attygalle on the Sri Lankan side and EXIM Bank Managing Director Gaurav Bhandari on the Indian side.

In addition, in response to a separate and urgent request from the Sri Lankan government, the extension of a $1 billion credit facility for the supply of essential items, including food and medicine, has been finalized and the first shipments of rice under this facility are expected to arrive in Sri Lanka soon.

Earlier in January this year, India had provided financial assistance to Sri Lanka which included a $400 million credit swap and the deferral of a payment of over $515 million by the Asian Clearing Union. . In cumulative terms, Indian support to the people of Sri Lanka in the first quarter of 2022 exceeds $2.5 billion.

Given the urgent nature of Sri Lanka’s requirement, India worked overtime to quickly finalize and start implementing the two lines of credit, within weeks, the Indian High Commission noted in its declaration.

He added that the Indian government also continues to encourage medium to long term capacity building efforts through increased Indian investment in Sri Lanka in key sectors such as ports, renewable energy, manufacturing, etc