India is going to send rice to Sri Lanka amid economic crisis

All in all, India has extended two key credit lines, the $1 billion for essential commodities, and $500 million to buy petroleum products

India will be sending Sri Lanka rice as part of the US$ 1 billion credit facility that was extended by New Delhi in March. The facility was signed during the visit of Sri Lankan Finance Minister Basil Rajapaksa to India last month. The facility is being used to supply essential commodities to the beleaguered country, starting with rice in next few days.

On Saturday, Indian envoy to Colombo Gopal Baglay handed over 40,000 MT of diesel to Sri Lanka's energy minister Gamini Lokuge under Indian assistance through Line of Credit of $500 million. India had offered $500 million line of credit to Sri Lanka for purchase of petroleum products in January. The pact for credit agreement was later signed in February between India's Exim bank and Sri Lankan government. This is the fourth consignment under the fuel Line of Credit, with previous deliveries on March 16, March 20 and March 23. In last 50 days, India has sent 200,000 MT of diesel to the country.

All in all, India has extended two key credit lines, the $1 billion for essential commodities, and $500 million to buy petroleum products. The Indian mission in Sri Lanka in a statement said, "In view of the urgent nature of Sri Lanka’s requirement, India worked overtime to expeditiously finalise and start implementing both the lines of credit, within weeks."

Since January, India has provided $2.4 billion financial assistance to the island country as it faces economic crisis. This included, a credit swap of US$ 400 million and deferment of an Asian Clearing Union payment of over US$ 515 million. The country is witnessing economic crisis, prompting the government to impose an emergency. Currently, the country is witnessing a 36-hour curfew, that will come to an end on Monday.

Last week, India's external affairs minister Dr S Jaishankar was on a visit to Sri Lanka for the BIMSTEC summit. The visit saw, EAM meeting the top leadership of the country, including the president, prime minister and holding talks with his Sri Lankan counterpart. During his various meetings, he assured India’s continued support in Sri Lanka’s economic recovery process and also virtually inaugurated the Jaffna cultural centre built with Indian support.