SL, India sign $ 500 m deal for purchase of petroleum products

The Export Import Bank (EXIM) of India and the Government yesterday signed a $ 500 million Line of Credit (LOC) agreement for purchase of petroleum products.

Finance Minister Basil Rajapaksa and the Indian High Commissioner Gopal Baglay were the witnesses of the agreement signed by Treasury Secretary S.R. Attygalle and India EXIM Bank Chief General Manager Gaurav Bhandari.

The Indian Government said its support for fuel imports through the LOC of $ 500 million was in response to Sri Lanka’s urgent requirement. This critical support comes in the wake of a virtual meeting between India’s External Affairs Minister and Minister Rajapaksa on 15 January during which they discussed 

a range of issues.

India said as Sri Lanka’s closest neighbour and longstanding partner, it was committed to assist Sri Lanka in its post-COVID economic recovery.

“Signing of the LOC Agreement is another landmark in our bilateral cooperation and is in continuation of India’s recent foreign exchange support of over $ 900 million to Sri Lanka,” a statement by the Indian High Commission said. “These measures are in line with the discussions between the two sides during the visit of the Minister of Finance to India in December 2021. With the recent support, India’s overall development assistance to Sri Lanka stands at close to $ 4 billion,” it added.