Sri Lanka signs USD 1 billion credit line with India
Sri Lanka on Thursday signed USD 1 billion credit line with India for procurement of food, medicines and other essential items, amid the island nation’s worsening economic crisis.
The agreement was signed between the State Bank of India (SBI) and the Government of Sri Lanka, during Sri Lankan Finance Minister Basil Rajapaksha’s two-day visit to India.
This agreement was signed after Rajapaksa held a meeting with Union Finance Minister Nirmala Sitharaman and External Affairs Minister S Jaishankar in New Delhi today. The Ministers discussed wide-ranging issues of mutual interest and economic cooperation.
This signing of the credit facility comes a day after Rajapaksa on Wednesday met PM Modi and thanked him for extending support for the Sri Lankan economy.
PM Modi spoke about the central role that Sri Lanka occupies in India’s ‘Neighbourhood First’ policy and its S.A.G.A.R (Security and Growth for all in the Region) doctrine. Modi reiterated that India would continue to stand with the friendly people of the neighbouring country.
Sri Lanka has seen its national currency getting devalued significantly against major international currencies, in addition to crippling fuel and gas shortages and daily electricity cuts.
As Sri Lanka faces a severe economic crisis, India has continued to assist its neighbouring country in its fight against the COVID-19 pandemic, and to mitigate its adverse impact and its developmental priorities.
India provided more than USD 500 million in foreign currency swaps to strengthen Sri Lanka’s foreign reserves, taking the total up to USD 900 million. India also extended the repayment time frame for the USD 500 million debt of Sri Lanka under the Asian Clearance Arbitration.
Espousing India’s Neighborhood first policy, Jaishankar said that India stands with Sri Lanka.
“Neighborhood first. India stands with Sri Lanka. USD 1 billion credit line signed for the supply of essential commodities. Key element of the package of support extended by India,” Jaishankar tweeted.
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My dear fellow citizens, That is another US$ 1 billion you are in debt , each year massive amount of interest being added, mainly used to keep you happy by providing subsidies you are demanding. But remember this is the jolly good sensation you get while you are scratching your ‘hori’ and immediately after things going to get even worse! Only way out is if you can ever unite, working very hard on an agreed plan for some years without talking about your rights and freedoms.
Word hard for who?
When you work hard, the corrupt politicians on all sides will squander the outcome and become richer !!
No that is your as well as the vast majority of grumbling population who want a government job. Work for yourself and your family. SL is a country people can grow throughout the year in most of the areas. Look for the opportunity and grab it. . Changing government did not work for 70 plus years, and it won’t work in future as well. When people work for themselves, have their own business, they are free. They control their money. Stop winging and wait the government to go and beg abroad to provide subsidised commodities. Both the loan and the interest should be paid back. The bottom line is the world market price has to be paid for what we buy, firstly by the importers and then transferred to the consumers.