Cabinet nod to seek $ 500 m credit line from India again

• Requests for seven-year payback time including a grace period 
• Power and Energy Minister Kanchana Wijesekera says Indian EXIM bank agreed in principle 

The Cabinet of Ministers at its inaugural meeting on Monday, approved to seek additional $ 500 million credit facility from Indian EXIM bank to import fuel.

“This $ 500 million is a new credit line. The terms are being discussed right now. In principle, the Indian EXIM bank has agreed to offer the credit line to Sri Lanka,” Cabinet Co-Spokesman and Power and Energy Minister Kanchana Wijesekera said at the post-Cabinet meeting media briefing yesterday.

He said Sri Lanka has requested for a payback period of seven years including a grace period, compared to the one-year financial return for the previous facility.

“The technical committee meeting is taking place at present,” he confirmed.

Wijesekera pointed out that Sri Lanka had previously received $ 500 million from the EXIM Bank of India, in addition to the $ 200 million from the State Bank of India.

The Minister also noted that Sri Lanka requires around $ 530 million for fuel imports from June.

The proposal to this effect submitted by Power and Energy Minister Kanchana Wijesekara was approved by the Cabinet of Ministers.