What’s in the news?
- India has extended a $500 million-Line of Credit (LOC) to Sri Lanka for urgent fuel imports, days after providing $900 million relief to the island nation facing one of its worst economic downturns.
- A line of credit, also known as a credit line, is an open-ended, revolving loan that a borrower may access on demand.
- The announcement follows a virtual meeting between Mr. Jaishankar and Sri Lanka’s Finance Minister Basil Rajapaksa recently, when they reviewed a $1.5 billion credit facility to help Sri Lanka augment its fast-draining foreign reserves, crucial to importing essentials food items, medicines, and fuel.
- Of the $1.5 billion, a sum of $500 million has been extended for fuel imports. These measures are in line with India’s commitment to stand with Sri Lanka, contribute to Sri Lanka’s economic growth and impart greater momentum to bilateral economic and commercial partnership.
- With this, a total $2.4 billion assistance has been provided by New Delhi, as the island battles a major economic crisis.