India Extends Its $1-Bn Credit Line To Sri Lanka By Another Year

India has extended its $1 billion credit line to Sri Lanka for another year. An agreement was signed between the State Bank of India (SBI) and the Sri Lankan government for the credit facility in March last year, but a major portion of it is still lying unutilised.

The credit line, part of about $4-billion emergency assistance extended by India during the peak of Sri Lanka's financial crisis early last year, was scheduled to end in March. The extension will help the beleaguered island nation, hit by an unprecedented economic crisis, procure food, medicine and other essential items.

In a tweet on Tuesday, the Indian High Commission in Sri Lanka said, "India reaffirms its commitment to the people of Sri Lanka. The Amendment Agreement signed in presence of Hon.Minister @ShehanSema today will enable Sri Lanka to use the $1 billion Indian credit facility for the procurement of medicine, food, and other essentials for one more year."

India extended multi-pronged assistance to Sri Lanka last year, through multiple credit lines and currency support, in line with its 'Neighbourhood First' policy. India's continued support to Sri Lanka is a testament to "our abiding commitment to stand with the government and the people of Sri Lanka towards early economic stabilisation and recovery," the High Commission added.

Meanwhile, Sri Lanka has decided to import 10 lakh eggs daily from five chicken farms in India to meet its growing market demand. Asiri Valisundara, chairman of country's top importing agency State Trading Corporation (STC) said that 2 crore eggs were imported from India, half of which have been released to the market.

The eggs were being imported from two chicken farms in India but the Animal Production Department has additionally approved the purchases from three other Indian farms on the basis of a report of three officials who visited the poultry farms, Valisundara informed, adding that the imported eggs would be released to bakeries, biscuit manufacturers, catering services and restaurants at a price of SLR 35 each.