India sends over 270,000 MT of petrol, diesel to Sri Lanka under credit line

India has sent about 270,000 MT of petrol and diesel to Sri Lanka to help alleviate the country's power crisis, which is occurring in the midst of the country's worst economic crisis in decades. Last week, the High Commissioner of India handed over a shipment of 40,000 MT of diesel to Sri Lanka's Energy Minister Mr. Gamini Lokuge, with the help of an Indian line of credit worth US$ 500 million.

India has given another US$ 1 billion in credit to Sri Lanka to support the island nation's struggling economy. This credit will help Colombo to keep food and fuel prices in check. Last month Sri Lankan President Mr. Gotabaya Rajapaksa met Prime Minister Mr. Narendra Modi and briefed him on "initiatives being taken by both countries to increase bilateral economic cooperation and conveyed his thanks for the support extended by India for the Sri Lankan economy."

New Delhi offered a US$ 500 million short-term loan to Colombo in February for the purchase of petroleum supplies on behalf of the Sri Lankan government through the Ministry of Energy and the Ceylon Petroleum Corporation. Sri Lanka received 100 tonnes of nano nitrogen liquid fertilisers from India in November 2021, after their government banned the import of chemical fertilisers.

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