India extends Sri Lanka $55M credit line for fertiliser imports

The Indian government has decided to extend a Line of Credit (LOC) of $55 million to Sri Lanka for the procurement of Urea fertiliser.

This credit line was extended Friday (10 June) in response to an urgent request from the Sri Lanka government amid the ongoing economic crisis, reports ANI.

"In this context, a LOC agreement was signed between GOSL and the Export-Import Bank of India today at Colombo, in the presence of the Prime Minister of Sri Lanka Ranil Wickremesinghe, the Minister of Agriculture Mahinda Amaraweera, and the High Commissioner of India to Sri Lanka Gopal Baglay. Senior officials from the Sri Lankan and Indian sides were also present during the signing ceremony," the Indian High Commission in Sri Lanka said in a statement.

This credit line will help Sri Lankan government secure urea fertiliser for the ongoing paddy sowing "Yala" season. 

In view of the critical requirement, the Sri Lankan government and EXIM Bank have agreed to complete all procurement procedures expeditiously so that urea supplies can reach Sri Lanka in a short span of time.

During the signing ceremony, Sri Lankan Prime Minister Ranil Wickremesinghe expressed his gratitude to the Indian government for the timely assistance.

The Indian High Commissioner highlighted that the speedy finalisation of the credit line testifies to the importance the Indian government attaches to the welfare of the people of Sri Lanka.

The support from India ranges from economic assistance of close to $3.5 billion to help secure Sri Lanka's food, health, and energy security by supplying essential items like food, medicines, fuel, kerosene etc.