New Delhi: Looking to improve “critical support” for Sri Lanka, which struggled against acute foreign exchange, India has offered a new credit line (LOC) of $ 500 million to neighboring islands for purchasing petroleum products.
Foreign Minister Jaishankar bid in a letter to his colleague Gl Peiris, said the Indian High Commission in Colombo.
India has recently expanded foreign exchange support from more than $ 900 million to Sri Lanka for imports of important items such as food and medicine.
The initial operational Loc, said the Indian government will help realize one of the four economic cooperation pillars identified during the visit of the Minister of Finance Lanka Basil Rajapaksa to India in December 2021.
The four pillars include food and health packages, energy security packages, offering ‘swaps Currency ‘to help Sri Lanka overcome the current balance of payments and facilitate Indian investment in various sectors in Sri Lanka which will contribute to growth and expand work.
In a virtual meeting with Jaishankar last week, Basil has welcomed Indian investment in Sri Lanka in a number of important fields including port, infrastructure, energy, renewing updated energy.