Cabinet nod to seek US$ 500mn fuel credit line from India afresh

The Cabinet has cleared the path to borrow US$500 million from India afresh to purchase fuel with a proposed seven-year payback period.

Power and Energy Minister Kanchana Wijesekera on Monday sought the approval of the Cabinet of Ministers to move ahead with the process to seek US$ 500 million from the Exim Bank of India.

The government will be requesting a stretched payback period of seven-years with a grace period for the loan, when compared to one-year payback period for earlier credit lines.

Earlier, the country received two fuel credit lines from India including US$ 500 million from the Exim Bank of India and another US$ 200 million from State Bank of India.