USD 1 bn Indian credit facility extended till March next year
The Indian High Commission yesterday (30) said that following a request from Sri Lanka, the State Bank of India (SBI) had extended the tenure of the USD 1 billion Credit Facility, provided in March 2022, for the procurement of essential items.
In this context, an Amendment Agreement was signed yesterday, in the presence of the State Minister of Finance, Shehan Semasinghe, senior officials from the Ministry of Finance of Sri Lanka and officials from the High Commission of India, Colombo. Officials from the State Bank of India joined the event from India, virtually, a senior HC official said.
The official said: With the signing of the Amendment Agreement, the Credit Facility will be available for use for a period of one more year, till March 2024. It may be recalled that since last year, the Facility has been used for urgent procurement of fuel, medicines, food items and industrial raw materials, as per the requirements and priorities of GOSL.
India extended multi-pronged assistance of about USD 4 billion to GOSL last year, through multiple Credit lines and currency support, in line with India’s ‘Neighbourhood First’ Policy. India’s continued support to Sri Lanka is a testament to our abiding commitment to stand with the Government and the people of Sri Lanka towards early economic stabilization and recovery.`
