In order to procure fuel stocks, Sri Lanka extends credit line with India by $200 million

Edited By: Vyomica Berry
Colombo, Sri Lanka Updated: May 02, 2022, 04:12 PM(IST)

Trade unions protest during a nationwide strike demanding the resignation of President Gotabaya Rajapaksa and his cabinet, blaming them for creating the country's worst economic crisis in decades, in front of the Presidential Secretariat in Colombo, Sri Lanka Photograph:( Reuters )

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The announcement was made by Sri Lanka's power and energy minister, Kanchana Wijesekera who added that four shipments will arrive from India in May

In order to procure fuel stocks, Sri Lanka on Monday (May 1) extended a credit line with India by $200 million.

The announcement was made by Sri Lanka's power and energy minister, Kanchana Wijesekera who added that four shipments will arrive from India in May.

She added that Colombo was in talks with New Delhi about extending the credit line by an additional $500 million so in total, the credit line will be $1.2 billion.

The island nation, which has a population of 22 million people, is experiencing its worse economic crisis since gaining independence from Britain.

It has been rocked by a wave of protests due to power cuts lasting for 13 hours, along with a shortage of food, fuel, and medicines.

The country has defaulted on its foreign debt and diesel prices have been raised 138 per cent.

Also read | Family of 5 Lankan Tamils arrive on Indian shores, flee island nation carrying infant

Southern Indian state Tamil Nadu is going to send shipments carrying 40,000 tonne of rice (value Rs 80 crore), life-saving drugs (Rs 28 crore), and 500 tonne of milk powder (Rs 15 crore) to Sri Lanka.

Demonstrators protesting outside the residence of President Gotabaya Rajapaksa have asked him to resign, with Sri Lanka's currency dropping more than 40 per cent against the dollar since March. 

(With inputs from agencies)

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