Source: Hindustan Times

Indian Finance minister Nirmala Sitharaman and Sri Lankan high commissioner Milinda Moragoda on Friday discussed the finalisation of a USD 1 billion line of credit to be provided by India to the island nation to purchase essential items to tide over an economic crisis.

Moragoda met Sitharaman and conveyed Sri Lanka’s appreciation for the support provided so far by India. He thanked her for the personal interest she has taken in supporting Sri Lanka at this critical time”, according to a statement from the Sri Lankan High Commission in New Delhi.

The high commissioner also followed up with minister Sitharaman on the early finalisation of the $1-billion line of credit to purchase essential items, which is part of the four-pillar bilateral economic cooperation concept,” the statement said.

As part of the four-pillar package decided during Sri Lankan finance minister Basil Rajapaksa’s visit to New Delhi last year, the Indian side has so far provided a USD 500-million line of credit for purchasing fuel and a currency swap of USD 400 million under the Saarc facility. The Indian side has also deferred the payment of USD 515 million that was due to the Asian Clearing Union.