More details revealed on Sri Lanka’s request for assistance from China & Australia

March 23, 2022 at 10:28 AM

Sri Lanka has reportedly requested financial assistance from the Government of Australia. 

Minister of Trade Bandula Gunawardana has requested a US $200 million credit line from Australia.

The Minister has requested financial assistance from Australia to import lentils, milk powder, and food products. 

Australia is the second nation from which Sri Lanka has sought financial assistance in the span of a week to address its worsening economic crisis. 

Earlier this week (21) it was reported that the Sri Lankan Government has requested a US$ 1 billion loan and a US$ 1.5 billion credit line from China.

The Chinese Embassy in Sri Lanka said the request for further financial assistance of US$ 2.5 billion is in addition to the US$ 1.5 million currency swap in 2021.

The Ministry of Finance today issued a clarification on the US$ 2.5 billion loan that has been sought from China. 

The Finance Ministry Secretary said the US$ 1.5 billion credit line from China is to be used to import raw materials, medicines, and essential food items. 

The Secretary further said the remaining US$ 1 billion loan is expected to be allocated to increase the liquidity in the foreign currency market. (NewsWire)