The State Bank of India has granted the Government of Sri Lanka an extension for their $1 billion Credit Facility, initially provided in March 2022, to procure essential items.
In a signing ceremony, an Amendment Agreement was inked between senior officials from the Ministry of Finance of Sri Lanka, representatives from the High Commission of India in Colombo, and virtually participating officials from the State Bank of India.
This Amendment Agreement allows Sri Lanka to continue using the Credit Facility for another year, extending its availability until March 2024.
The Facility has been crucial in meeting urgent procurement needs, including fuel, medicines, food items, and industrial raw materials, based on the requirements and priorities set by the Sri Lankan government.
Last year, the Government of India extended comprehensive assistance of around $4 billion to Sri Lanka through various credit lines and currency support.
According to a statement issued by the Indian High Commission, this ongoing support reaffirms India's dedication to standing alongside the Government and people of Sri Lanka, aiding in early economic stabilization and recovery.