India Signs Amendment Agreement with Sri Lanka, Extends $1 Billion Credit Facility to Achieve Early Economic Stabilisation
31st May, Chennai: After a devastating economic crisis hit Sri Lanka, New Delhi has been supporting the island nation to come out of the effects of this crisis. Last year itself India had extended a multi-pronged assistance of $4 billion through several credit lines and currency support. This previous credit facility extended was utilized to procure fuel and industrial raw materials. India has always stood by its partners in the subcontinent during times of crises, given its primary focus on the ‘Neighbourhood First Policy’
On Tuesday, India extended a $1 billion credit line to Sri Lanka in order to procure much-needed food, medicine and other essential items. An agreement was signed between the State Bank of India (SBI) and the Sri Lankan government for $1 billion credit facility in March last year which through an Amendment Agreement was further extended till March 2024.
The Indian High Commission in Sri Lanka after the signing tweeted, “The facility was extended by India through @TheOfficialSBI in response to a specific request from GOSL and forms a part of the multi-pronged assistance of USD 4 billion provided by India last year.”
The Indian High Commission portraying the deep relationship between India and Sri Lanka further said that India is always committed to stand with the government of Sri Lanka and its people to help the nation recover from its economic crisis and achieve early economic stabilisation.
