India extends USD 1 Billion Credit Line for Sri Lanka until March 2024

Sri Lanka has been granted an extension of the credit facility signed March 2022, with India providing access to a USD 1 billion credit facility until March 2024.

Extension of the credit facility will allow Sri Lanka to continue importing essential commodities.

The signing ceremony took place today in the presence of State Minister of Finance Shehan Semasinghe, senior officials from the Sri Lankan Ministry of Finance, and representatives from the High Commission of India in Colombo.

The officials of the State Bank of India participated in the event virtually from India.

The credit facility, initially provided by India last year, enables Sri Lanka to procure urgent supplies of fuel, medicines, food items, and industrial raw materials according to the government’s requirements and priorities.

This extension is part of India’s comprehensive assistance to Sri Lanka, totaling approximately USD 4 billion last year, in line with its Neighbourhood First Policy.