An Amendment Agreement was signed between the Governments of India and Sri Lanka to extend the USD 1 billion Credit facility granted by India for a further year, making it available for use until March 2024.
State Minister of Finance Shehan Semasinghe stated that the extension was provided as the USD 423.25 million from the allocated sum remained unused.
Taking to Twitter, he further stated that the Government will prioritise the import of essential medicines till March 2024.
Meanwhile, the Indian High Commission in Sri Lanka said that in response to a request from the Government of Sri Lanka, the State Bank of India has extended the tenure of the USD 1 billion Credit Facility provided to Sri Lanka for procurement of essential items in March 2022.
The High Commission said in a statement, that in this context, an Amendment Agreement was signed today (May 30) in the presence of the State Minister of Finance Shehan Semasinghe, senior officials from the Ministry of Finance of Sri Lanka and officials from the High Commission of India, Colombo. Officials from the State Bank of India joined the event from India virtually.
With the signing of the Amendment Agreement, the Credit Facility will be available for use of the Government of Sri Lanka for a period of one more year, till March 2024. It may be recalled that since last year, the Facility has been used for urgent procurement of fuel, medicines, food items and industrial raw materials, as per the requirements and priorities of GOSL.
The Government of India extended multi-pronged assistance of about USD 4 billion to Sri Lanka last year, through multiple Credit lines and currency support, in line with India’s ‘Neighbourhood First’ Policy.
The Indian High Commission added that India’s continued support to Sri Lanka is a testament to its abiding commitment to stand with the Government and the people of Sri Lanka towards early economic stabilization and recovery. (NewsWire)