RBI issues notification to operationalise $500 million loan provided to Sri Lanka for petroleum products

The Reserve Bank of India (RBI) has issued a notification to operationalise the $500 million line of credit (LoC) provided by India to Sri Lanka for buying pet­roleum products. In February 2022, the Export Import Bank of India entered into a pact with Sri Lanka to provide the $500 million LoC to fin­ance the purchase of petroleum products. The LoC also includes a clause mandating Sri Lanka to purchase 75 per cent of goods and services from Indian suppliers.