India responds positively to SL request for US $500 million credit facility

• India will look at Sri Lanka from a humanitarian perspective
• Sri Lanka is currently facing what is dubbed ‘the worst ever foreign exchange crisis exacerbated by the pandemic that has hit its US $ 5 billion tourism industry

By Kelum Bandara   

Finance Minister Basil Rajapaksa who had bilateral talks with his Indian counterpart Nirmala Sitharaman sought US $ 500 million credit arrangement from India to purchase fuel, 
Daily Mirror learns.  

The two ministers held talks in New Delhi . The Indian Minister responded positively to Sri Lanka’s request . She is reported to have said that India will look at Sri Lanka from a humanitarian perspective.   

Sri Lanka is currently facing what is dubbed ‘the worst ever foreign exchange crisis’.   

It was exacerbated by the pandemic that hit the US $ 5 billion tourism industry. The country has imposed import restrictions to fend off the crisis. In the management of meagre foreign reserves, It has prioritized the imports of fuel, pharmaceuticals and essential items. During yesterday’s discussion, the Indian Minister also said her country would adopt a ‘Sri Lanka first policy’ in its strategic relations.   

Besides cooperation in the purchase of fuel, the Sri Lankan side also asked for cooperation in other areas such as agriculture.   

Minister Basil Rajapaksa will meet Indian Prime Minister Narendra Modi today. It is learnt that the agreements for cooperation for various sectors would be finalized after that.   
Sri Lankan High Commissioner Milinda Moragoda and Finance Ministry Secretary S.R. Attygalle attended the meeting.     

• During yesterday’s discussion, the Indian Minister said her country would adopt a ‘Sri Lanka first policy’ in its strategic relations
• Finance Minister Basil Rajapaksa will meet Indian Prime Minister Narendra Modi today