India extends USD 500 million credit line to Sri Lanka for purchasing fuel

India has extended a line of credit of around $500 million to Sri Lanka to fund the country’s fuel purchases, as the nation struggles to overcome its worst financial and energy crisis in decades. The Export-Import Bank of India (EXIM) will provide the credit line for purchasing petroleum products. Recently, India has also granted Sri Lanka a $400 million worth swap ar­rangement to boost its reserves. In addition, Sri Lanka is expected to purchase 40,000 tonnes of petroleum and 40,000 tonnes of diesel from IOCL. With this support, India’s overall development assistance to Sri Lanka stands at around $4 billion.

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