India extends US $1b credit line to Sri Lanka

India on Thursday extended a USD 1 billion credit line to Sri Lanka to help the island nation tide over its worst economic crisis while allowing for the import of food, medicines and other essential items.

An agreement to this regard was inked between the State Bank of India, the country’s largest public lender, and the Sri Lankan government in New Delhi, in the presence of visiting Sri Lankan Finance Minister Basil Rajapaksa.

“Neighbourhood first. India stands with Sri Lanka. US$ 1 billion credit line signed for supply of essential commodities. Key element of the package of support extended by India,” Indian Foreign Minister S Jaishankar tweeted.

Earlier in the day, Rajapaksa held talks with Jaishankar and his Indian counterpart Nirmala Sitharaman.

A day before, the Lankan Minister called on Indian Prime Minister Narendra Modi and thanked him for extending financial support to Colombo.

Last month, India provided a USD 500 million line of credit to Sri Lanka to help the neighbouring nation avert a severe foreign exchange and energy crisis.