The credit line is part of about $4bn in emergency assistance extended by India during the peak of Sri Lanka’s financial crisis last year.
India has extended a $1bn credit line for Sri Lanka by one year, a Sri Lankan official says, giving the crisis-hit island nation a backup infusion of dollars for essential imports.
The credit line, part of about $4bn in emergency assistance extended by India during the peak of Sri Lanka’s financial crisis early last year, was scheduled to end in March.
After the negotiations, the credit line was extended until March 2024, Sri Lanka’s Deputy Treasury Secretary Priyantha Rathnayake told the Reuters news agency on Tuesday.
“There is about $350m left of the credit line that can be utilised as needed,
“However, given the increase of foreign exchange availability in the market, the need is not as keen as it was last year.”
The announcement came as Sri Lanka’s creditor nations are preparing for their first meeting later on Tuesday to coordinate the restructuring of the nation’s debt. The focus is turning to whether China will attend.