RBI notifies $500 mn credit line for Sri Lanka to procure petroleum products

Reserve Bank of India (RBI) on Thursday issued a notification to initiate the $500 million line of credit provided by India to Sri Lanka, which would enable it to buy petroleum products.

The island nation is going through one of its worst economic crisis mainly due to the Coronavirus pandemic.

Export-Import Bank of India (Exim Bank) entered into a pact on February 2, 2022 with Sri Lanka to provide the $500 million line of credit for purchasing petroleum products.

In a notification, RBI said that out of the total credit by Exim Bank, goods, works and services of value of at least 75 per cent should be supplied by the seller from India.

The remaining 25 per cent of goods and services may be procured by seller (Sri Lanka) from outside India.

The agreement under the line of credit came into effect from February 18, 2022. (NDTV)