Sri Lanka Crisis: India has come forward to help Sri Lanka facing severe financial crisis. India has decided to provide extra loan facility to Sri Lanka to buy fuel. India has agreed to provide a line of credit of $ 500 million to Sri Lanka.
Money will be used to import crude oil
Giving information about this, Sri Lanka’s Finance Minister Ali Sabri said that this loan facility from India will be used for import of crude oil. In the absence of foreign exchange, Sri Lanka is not able to import oil for its fuel needs.
IMF has also been requested
Let us tell you that Sri Lanka has appealed to the International Monetary Fund (IMF) for quick financial help, but in view of the delay in negotiations on this relief package, India has given it an additional loan facility of $ 500 million on its behalf.
In February also, the help of $ 500 million was given
Earlier in February also, India had given a loan facility of $ 500 million to Sri Lanka for fuel purchase. With that amount, Sri Lanka has purchased oil from the Indian oil company Indian Oil, but now that amount had also reached the verge of running out. In this context, the additional credit facility given by India will help Sri Lanka to overcome the crisis.
India will consider for 1 billion dollars in aid
Let us tell you that Sabri, who was in Washington for talks for help with the IMF, also expressed hope that India would also consider giving another line of credit of one billion dollars.
Sri Lanka is talking to many countries
India has already agreed to stop payment of $1.5 billion in lieu of import payments. It on Friday extended the $400 million currency swap facility extended to Sri Lanka in January this year. Sri Lanka needs at least $4 billion in aid to deal with its growing economic troubles and Sabri is in talks with countries such as China and Japan as well as international institutions such as the World Bank and the IMF for financial assistance.
Know what the Finance Minister said
Sabri said, “The next nine months will be difficult for us. In the meantime, we need to bring more investment in US dollars to the Sri Lankan central bank. We are in talks with many countries. If these efforts are successful and if there is an investment of two billion dollars in the central bank, then it will not devalue our currency and it will be stable.
Debt payment service suspended on April 12
Sri Lanka on 12 April suspended its debt payment service for the first time in history. The unprecedented financial crisis in Sri Lanka has sparked widespread anti-government protests in recent weeks due to food shortages, rising fuel prices and power cuts.