Indian Economy News

Sri Lanka extends credit line with India by $200 mn for fuel: Power Min

Sri Lanka's Power and Energy Minister announced on Monday that the country has increased its credit line with India by US$ 200 million in order to purchase emergency fuel stocks, with four shipments expected to arrive in May. 

Colombo was also in talks with New Delhi over extending the credit line by an additional US$ 500 million.

The island nation is now critically short of foreign exchange reserves and has approached the International Monetary Fund for an emergency bailout. This situation is a result of the island nation having been hit hard by the pandemic and because of the revenue shortfall due to steep tax cuts imposed by the government.

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

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