India, Sri Lanka Sign Agreement To Procure USD 1 Billion Credit Facility

Reaffirming its commitment to the people of Sri Lanka, India on Tuesday signed an agreement with Colombo to enable the use of USD 1 billion credit facility for the procurement of medicine, food, and other essentials for one more year.

Taking to Twitter, the High Commission of India in Colombo, Sri Lanka said, “#India reaffirms its commitment to the people of #SriLanka.The Amendment Agreement signed in presence of Hon.Minister @ShehanSema today will enable to use the USD 1 billion #Indian credit facility for the procurement of medicine, food, and other essentials for one more year.”

“Beyond the original duration, that is, till March 2024. The facility was extended 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 last year,” he added.

Recently, Sri Lanka’s High Commissioner to India Milinda Moragoda had an interactive session with the New Delhi-based Trade Commissioners/ Commercial Diplomats concurrently accredited to Sri Lanka today at the High Commission premises. This is part of the continued efforts to further expand engagement with the concurrently accredited Missions in New Delhi.

The interactive session was attended by Trade Commissioners/ Commercial Diplomats from Austria, Belgium, Denmark, Chile, Finland, Hungary, Mexico, Norway, Poland, Spain, and Sweden. The purpose of the meeting was to discuss ways to enhance trade and economic relations between Sri Lanka and these countries.

During the meeting, High Commissioner Moragoda provided the participants with an update on the Extended Fund Facility (EFF) Arrangement with the International Monetary Fund (IMF), as well as the Indian Rupee trade and the planned economic integration with India.

The discussion covered a broad spectrum of topics related to trade and commerce, with a particular focus on promoting economic recovery in Sri Lanka, including through trilateral cooperation with the involvement of India.

In March this year, the IMF Executive Board approved a 48-month extended arrangement under the Extended Fund Facility of USD 3 billion to support Sri Lanka’s economic policies and reforms. Of the total USD 3 billion funds, the country was immediately promised an initial disbursement of about USD 330 million.

(Source – ANI)