SL begins groundwork to borrow US$ 200mn from Pakistan

2 February 2022 12:00 am - 10 - {{hitsCtrl.values.hits}}

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By Nishel Fernando

The government has commenced groundwork to secure US$ 200 million credit line extended by the Government of Pakistan while a US$1 billion credit line from India is expected to materialise next week. The discussions on the US$ 200 million credit line was taken up during Trade Minister Bandula Gunawardana’s recent official visit to Pakistan.

Speaking to Mirror Business, Secretary to the Treasury Sajith Attygalle revealed that the two countries have agreed US$ 200 million in principle while the details of the credit line is yet to be worked out.

Under this credit line, cement, basmati rice and medicines manufactured in Pakistan are to be imported through the State Trading (General) Corporation.

Emphasis would be paid for the importation of cement as Sri Lanka saw a cement shortage in the market recently, which had led to sky rocketing prices.

Attygalle noted that the tenure of the credit line is yet to be finalised and the Treasury along with the Trade Ministry and the High Commission are working on drafting the agreement, which is to be cleared by the Attorney General’s Office.

Meanwhile, the government is expecting to secure US$ 1 billion credit line requested from India next week.

The US$ 1 billion Indian credit facility is to be financed to import essential items such as food and medicines from India.

India’s External Affairs Minister Dr. S. Jaishankar and Finance Minister Basil Rajapaksa during a virtual meeting held last month reviewed the progress of the credit line.

In addition to that India has already extended a US$ 500 million credit line for fuel.

Sri Lanka already has drawn down from a US$ 200 million currency swap it entered into with Bangladesh Bank, for which the country sought a 3-month extension of the validity of the loan in December 2021.

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Comments - 10

Jehan Wednesday, 02 February 2022 10:17 AM

Racist SL government should not be given any funds.

Labby Wednesday, 02 February 2022 10:37 AM

We can't stand on our own feet as a country. What independence are we boasting about?

Joci Wednesday, 02 February 2022 10:43 AM

This is called hegannas 2500 years pride.

DillonDP Wednesday, 02 February 2022 10:46 AM

Good some relief, but why are you working on the ground

Nadagang Wednesday, 02 February 2022 11:56 AM

Wonder whether the chairman of " one country one Law" will permit to borrow from a Muslim country.

Vikrama Wednesday, 02 February 2022 12:04 PM

What kind of a joke is this :) ? So Pakistan will give Sri Lanka Loan by taking loan? Or is it just Sri Lanka sending some signal to India?

Punchi Banda Wednesday, 02 February 2022 04:02 PM

Pakistan has not met IMF conditions and cannot draw on allocated IMF funds. It is looking for USD 5 billion in loans from China, Russia and Kazakhstan. A few days ago It borrowed USD 1 billion for 7 years at 7.79 % interest very much higher than market rates. This country is giving us a loan, ha ha ha

Jeewes Jupiter Wednesday, 02 February 2022 04:02 PM

About to celebrate 'Independence' when in reality we as a country are unable to stand on our own feet and provide for it's people! What a sad state of affairs over the decades have let this beautiful country full of natural resources into the abyss that it has fallen into today :(

Johan Wednesday, 02 February 2022 04:26 PM

Next is Somalia... Way to go?.. Basil onto something.. Still he get 10% on everything?

Lanka Shantha Wednesday, 02 February 2022 08:23 PM

Allow Taiwan to open its Embassy here. China will pay any amount of money as donation to close it. See how Lithuania is acting on this.

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SL begins groundwork to borrow US$ 200mn from Pakistan

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