In response to a request from the Government of Sri Lanka (GOSL), the State Bank of India (SBI) has extended the tenure of the USD 1 billion Credit Facility provided to the government for procurement of essential items in March 2022, the Indian High Commission in Colombo said.
In this context, an Amendment Agreement was signed on 30 May 2023 by the Deputy Secretary of the Treasury in the presence of the State Minister of Finance Shehan Semasinghe, senior officials from the Ministry of Finance of Sri Lanka and officials from High Commission of India, Colombo at the Ministry of Finance. Officials from the State Bank of India joined the event from India virtually.
With the signing of the Amendment Agreement, the Credit Facility will be available for use for a period of one more year, till March 2024. Since last year, the Facility has been used for urgent procurement of fuel, medicines, food items and industrial raw materials, as per the requirements and priorities of the government.
The initial agreement was signed in 2023 March and out of the US$ 1 billion allocated materials were imported for US$ 576.75 million. The extension of the agreement is for the remaining US$ 423.25.
Accordingly, steps will be taken to prioritize the import of essential medicines under the Indian loan assistance scheme till March 2024, State Minister of Finance Semasinghe said.
Government of India extended multi-pronged assistance of about USD 4 billion to the Sri Lankan government last year, through multiple Credit lines and currency support, in line with India’s ‘Neighborhood 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 stabilization and recovery,” the High Commission said.
Courtesy: Colombo Page
