Sri Lanka receives over 270,000 MT of fuel through Indian credit line

India has supplied over 270,000 MT fuel to Sri Lanka so far to help ease the power crisis in the island country which is witnessing acute power cuts. Moreover, one consignment each of 36,000 MT petrol and 40,000 MT diesel was delivered to the island nation in the last 24 hours. The consignment is a part of the US 500 million oil line of credit (LoC) extended by India to Sri Lanka.

"#Indian credit line for fuel at work!!! One consignment each of 36,000 MT petrol and 40,000 MT diesel was delivered to #SriLanka in the last 24 hours. Total supply of various types of fuel under Indian assistance now stands at more than 270,000 MT," tweeted India High Commission in Colombo. Sri Lanka is battling a severe economic crisis with food and fuel scarcity affecting a large number of the people in the island nation. The economy has been in a free-fall since the onset of the COVID-19 pandemic.

The Sri Lankan rupee is fast depreciating against the dollar and foreign debt is mounting. The Sri Lankan government’s income has also taken a big hit due to a drop in tourism that has given rise to gas and fuel shortages, leading to massive power cuts.As New Delhi is providing financial assistance to Colombo, India has announced another USD 1 billion as a credit to Sri Lanka to help shore up the sinking economy of the island nation. The USD 1 billion line of credit to Colombo will help in keeping their food prices and fuel costs under check.

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Last month Sri Lankan President Gotabaya Rajapaksa met Prime Minister Narendra Modi and briefed him on "initiatives being taken by both countries to increase bilateral economic cooperation, and conveyed his thanks for the support extended by India for the Sri Lankan economy". PM Modi has conveyed to Sri Lankan Finance Minister Basil Rajapaksa, who has visited India twice in recent months, that the latter would always stand with the island nation as it occupies a central role in New Delhi’s "neighbourhood first policy."

In February, New Delhi provided a short-term loan of USD 500 million to Colombo for the purchase of petroleum products through the Ministry of Energy and the Ceylon Petroleum Corporation on behalf of the Government of Sri Lanka. In November 2021, India had given 100 tonnes of nano nitrogen liquid fertilisers to Sri Lanka as their government stopped the import of chemical fertilisers.

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