India extended a line of credit $ 500 million to Sri Lanka for importing fuel: Govt in RS

The Union Government has extended a line of credit of $ 500 million to Sri Lanka for importing fuel from India, V. Muralidharan, Minister of State (MoS), External Affairs said in Rajya Sabha on Thursday.

New Delhi: The Union Government has extended a line of credit of $ 500 million to Sri Lanka for importing fuel from India, V. Muralidharan, Minister of State (MoS), External Affairs said in Rajya Sabha on Thursday.

The MoS in a written reply further stated that in January this year, India extended a US$ 400 million currency swap to Sri Lanka under the SAARC Framework and agreed to deferral of Asian Clearing Union (A.C.U.) settlement of US$ 515.2 million by two months.

"In addition, a new Line of Credit of US$ 500 million was extended to Sri Lanka by the government for importing fuel from India. As close friends and maritime neighbors, both India and Sri Lanka stand to gain from closer economic interlinkages. Both nations remain in close touch for mutually beneficial bilateral cooperation for shared progress and prosperity," the MoS stated.

"Under its 'Neighbourhood First' policy, the government is committed to developing friendly and mutually beneficial relations with all its neighbors. In line with this, India continues to support Sri Lanka in all possible ways to overcome the economic and other challenges posed by the COVID-19 pandemic," he added.