NEW DELHI: The Central government has extended 8 Lines of Credit (LOCs) to Sri Lanka amounting to USD 1850.64 million in sectors, including, defence, railways, infrastructure, renewable energy, petroleum and fertilizers in the past one decade.
The government is dedicated to creating cordial and mutually beneficial relationships with all of its neighbours as part of its "Neighbourhood First" programme. According to this policy, India continues to support Sri Lanka in overcoming its economic crisis and helping the country build its economy, said S. Jaishankar, Minister of External Affairs, in the Lok Sabha on Friday.
As part of the SAARC Framework, India offered Sri Lanka a USD400 million currency swap in January and postponed subsequent Asian Clearing Union (A.C.U.) settlements until July 6. Sri Lanka received a 500 million dollar line of credit to be used for petroleum imports from India. Additionally, India has provided a USD 1 billion credit line for the purchase of Indian-made food, medicines, and other necessities.
Also, essential medicines costing around Rs 6 crore, 15,000 litres of kerosene oil, and USD 55 million LoC for the purchase of urea fertiliser were given as gifts to Sri Lanka. According to the Parliament response, the Tamil Nadu government has given rice, milk powder, and medications worth USD16 million as part of a bigger Indian humanitarian effort.
the Indian Development and Economic Assistance Scheme (IDEAS) standards are followed when extending lines of credit (LoCs) for development assistance. The terms of these "soft loans" are open and transparent, with a low-interest rate, a delay in principal repayment, a long repayment period, and inherent flexibility, the ministry said.
Rajya Sabha adjourned till midnoon, amid din
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