Sri Lanka says India to provide additional $500 mln for fuel

 

India will provide an additional $500 million in financial assistance to Sri Lanka for it to buy fuel, Sri Lanka's foreign minister told reporters on Wednesday, adding Bangladesh was also willing to postpone a $450 million in swap repayments.

"Assistance by the IMF will take about six months to come to us and it will come in tranches," Sri Lankan Foreign Minister G. L. Peiris said. "During the intervening period, we need to find funds to keep our people supplied with essentials."

Sri Lanka has been struggling to pay for imports after its foreign exchange reserves plummeted sharply in recent times, causing a devaluation of its currency and spiralling inflation.

"India has agreed to provide an additional USD 500 million for our fuel imports," Mr Sabry said on Friday, while adding that he was hopeful that New Delhi would consider handing out another USD 1 billion dollars as a credit line.

India has already agreed to defer USD 1.5 billion in import payments that Sri Lanka needs to make to the Asian Clearing Union.   BY THE STAR