Indian Economy News

India sends one more consignment of 40,000 MT of diesel to Sri Lanka

On May 31, India sent another 40,000 metric tonnes of diesel to Sri Lanka to assist in relieving the acute fuel shortage in the debt-ridden island nation, which is experiencing its worst economic crisis in decades.

Last month, India offered an additional US$ 500 million credit line to Sri Lanka to help the neighbouring country acquire fuel after its foreign exchange reserves plunged drastically in recent months, prompting a depreciation of its currency and spiralling inflation.

On May 23, India had provided approximately 40,000 metric tonnes of petrol to Sri Lanka. On February 2, India and Sri Lanka had signed a US$ 500 million Line of Credit Agreement for the purchase of petroleum products.

In keeping with India's 'Neighbourhood First' policy, India has provided nearly US$ 3.5 billion in aid to the people of Sri Lanka in 2022 to assist them in overcoming their current troubles. In March and April, about 400,000 MT of various types of fuel were provided to Sri Lanka through Indian aid.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.