India, Sri Lanka sign USD 500 million agreement for purchase of petroleum products
India had also announced a billion dollar assistance package for Sri Lanka last month
India’s Export Import (EXIM) Bank on Wednesday signed a USD 500 million Line of Credit agreement with Sri Lanka for the purchase of petroleum products.
The agreement between EXIM Bank and Sri Lanka Treasury was signed in presence of Sri Lankan Finance Minister Basil Rajapaksa and Indian High Commissioner Gopal Baglay, a tweet by the Indian High Commission in Sri Lank on Wednesday said.
“A friend in need is a friend indeed!!@IndiaEximBank signed the USD 500 million Line of Credit Agreement for purchase of petroleum products with #SriLanka Treasury today in presence of Hon'ble Finance Minister @RealBRajapaksa and High Commissioner,” the tweet read.
Last month, EAM S Jaishankar had held a virtual meeting with Sri Lankan Finance Minister Rajapaksa and reviewed the progress in extending the Indian credit facility of US $ 1 billion for importing food, essential items and medicines and US $500 million for importing fuel from India.
During the meeting, the two ministers had positively noted the extension of US $400 to Sri Lanka under the SAARC currency swap arrangement and deferral of Asian Clearing Union (ACU) settlement of US $515.2 million by two months.
The Indian government had also announced a billion dollar assistance package in addition to other balance of payment support to Sri Lanka last month.
Sri Lanka's Ministry of Energy has decided to purchase 40,000 metric tonnes each of petrol and diesel from the Indian Oil Corporation, according to a Sri Lankan Cabinet note on Tuesday.