USD 500 million LOC agreement for purchase of petroleum products

The Export Import Bank (EXIM) of India and the Government of Sri Lanka (GOSL) signed a USD 500 million Line of Credit (LOC) Agreement for purchase of petroleum products on February 02, 2022, in the presence of the Minister of Finance of Sri Lanka, Basil Rajapaksa and the High Commissioner of India to Sri Lanka, Gopal Baglay.

The Agreement was signed by Treasury Secretary, S.R. Attygalle from the Sri Lankan side and Chief General Manager of EXIM Bank, Gaurav Bhandari from the Indian side.

The Government of India (GOI) support for fuel imports by Sri Lanka from India, through the LOC of USD 500 million is in response to GOSL’s urgent requirement. This critical support comes in the wake of a virtual meeting between the External Affairs Minister of India and the Minister of Finance, Basil Rajapaksa on January 15, 2022, during which they discussed a range of issues.

As Sri Lanka’s closest neighbour and long-standing partner, India is committed to assist Sri Lanka in its post-Covid economic recovery. Signing of the LOC Agreement is another landmark in our bilateral cooperation and is in continuation of India’s recent foreign exchange support of over USD 900 million to Sri Lanka. These measures are in line with the discussions between the two sides during the visit of Minister of Finance to India in December 2021. With the recent support, India’s overall development assistance to Sri Lanka stands at close to USD 4 billion.

(Indian HC)