8 lines of Credit extended to Sri Lanka amounting to USD 1850.64 million: Govt in LS

Responding to a query in the Lok Sabha on Friday, the Central Government said it had extended 8 credit lines to Sri Lanka amounting to USD 1850.64 million in the last 10 years. EAM S Jaishankar said that in line with India's 'Neighbourhood First' policy, India was committed to supporting Sri Lanka to overcome its economic challenges.

New Delhi: The Central Government, while briefing the Parliament, on Friday said that it has extended 8 Lines of Credit to Sri Lanka amounting to USD 1850.64 million in sectors including railways, infrastructure, defense, renewable energy, petroleum, and fertilizers in the past 10 years. The above statement was made by the External Affairs Minister Dr. S Jaishankar in the Lok Sabha today.

In response to a query raised by Lok Sabha MP S Ramalingam on the total amount of loans granted to the island nation to overcome the economic crisis and the steps taken by the Indian govt to recover the loan from the Sri Lankan govt, EAM Jaishankar said, "Government of India has extended 8 Lines of Credit (LOCs) to Sri Lanka amounting to USD 1850.64 million in sectors including railways, infrastructure, defence, renewable energy, petroleum and fertilizers in the past 10 years".

Under its ''Neighbourhood First'' policy, the Union External Affairs Minister said that the government is committed to developing friendly and mutually beneficial relations with all its neighbors. In line with this policy, India continues to assist Sri Lanka in its economic development and also supports it in overcoming its economic challenges.

He noted that In January 2022, India extended a US$ 400 million currency swap to Sri Lanka under the SAARC Framework and deferred successive Asian Clearing Union (A.C.U.) settlements till July 6, 2022. A Line of Credit of US$ 500 million was extended to Sri Lanka for importing fuel from India.

"In addition, India has extended a credit facility of US$ 1 billion for the procurement of food, medicines, and other essential items from India. Humanitarian assistance was also provided to Sri Lanka by gifting essential medicines worth about INR 6 crores, 15,000 liters of kerosene oil, and the US $ 55 million LoC for procurement of Urea fertilizer. Government of Tamil Nadu has contributed rice, milk powder, and medicines worth US$ 16 million, as part of the larger Indian assistance effort", Jaishankar told the parliament.

On the question of the steps taken by the government to recover the loan from the Sri Lankan government, Jaishankar said, “development assistance under Lines of Credit (LoCs) is extended by the Indian Development and Economic Assistance Scheme (IDEAS) guidelines of the Government of India. By these guidelines, the terms of these soft loans are transparent, with a low rate of interest, a moratorium in principal repayment, a long repayment period, and in-built flexibility. In case of the delay in repayment by borrowing Government, the issue is taken up bilaterally”.

Also, the issue of Fishermen in Sri Lanka was raised today in the Parliament, wherein the government informed that 144 Indian fishermen were arrested in 2022 by Sri Lankan authorities, of which 138 have been released (115 repatriated).

The statement was made by MoS MEA V Muraleedharan. He said that Indian fishermen are arrested from time to time by the Sri Lankan authorities for allegedly crossing the International Maritime Boundary Line and fishing in Sri Lankan waters.

He told the Parliament that as per the available information, in 2022 (till date) a total of 144 fishermen were arrested by the Sri Lankan Navy. Out of these, 29 Indian fishermen have been arrested after 15 June 2022 in 4 separate incidents.

With sustained diplomatic efforts, the Government of India has secured the release of 138 out of 144 fishermen. 115 out of the 138 fishermen released have been repatriated. 23 fishermen are scheduled to be repatriated soon. Currently, there are 6 Indian fishermen in Sri Lankan custody.

Muraleedharan informed that efforts are on for the early release and repatriation of these 6 Indian fishermen.