COLOMBO: Sri Lanka has sought an fresh credit line of$1.5 billion from India to import rudiments, the islet nation’s central bank governor said on Monday, amid its worst profitable extremity in decades.
The country of 22 million people is floundering to pay for essential significances after a 70pc drop in foreign exchange reserves in two times led to a currency devaluation and sweats to seek help from global lenders. Energy is in short force, food prices are soaring and demurrers have broken out as Sri Lanka’s government prepares for addresses with the International Monetary Fund amid enterprises over the country’s capability to pay back foreign debt.
The new line is on top of the$ 1 billion support extended by India to help pay for critical significances when Sri Lankan Finance Minister Basil Rajapaksa travelled to New Delhi before this month. “ There’s a veritably close discussion continuing for an fresh support of$1.5 billion (with India) by way of canvas support as well as other essential goods support of credit terms,” Ajith Nivard Cabraal told an online event.
Cabraal’s commentary followed a report that said the extremity- hit country was in addresses with India for an fresh credit line of$ 1 billion.
Delhi has indicated it would meet the request for the new line, to be used for importing particulars similar as rice, wheat flour, beats, sugar and drugs, one source briefed on the matter said.