India extends credit facility of USD 1 billion available to Sri Lanka for use till March 2024

In Sri Lanka, an Amendment Agreement to extend the tenure of a USD 1 billion Credit Facility was signed today. The agreement marks an important step in continuing the financial support provided by from the Indian side to the Sri Lankan government for the procurement of essential items.
The signing ceremony took place in the presence of Sri Lanka’s state minister of finance, Shehan Semasinghe, along with senior officials from the Ministry of Finance of Sri Lanka and representatives from the High Commission of India in Colombo. The officials from the State Bank of India joined the event virtually.
AIR correspondent reports that with the signing of amendment agreement, the billion dollar credit line that was made available to Sri Lanka last year has been extended until March 2024. The credit line was extended last year when Sri Lanka was in the midst of its worst ever economic crisis since its independence. The facility has been instrumental in the urgent procurement of critical supplies for the island nation such as fuel, medicines, food items, and industrial raw materials. This extension of financial support further underscores the strong commitment of the Government of India, as it continues to assist Sri Lanka with a comprehensive package of approximately USD 4 billion, in line with India’s ‘Neighbourhood First’ Policy.

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