8 LoC worth USD 1.85 billion extended to Sri Lanka over 10 years: Jaishankar
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NEW DELHI: External Affairs Minister (EAM) S Jaishankar said on Friday that India has extended 8 Lines of Credit (LoC) to Sri Lanka worth USD 1850.64 million in the last 10 years.
"Government of India has extended 08 Lines of Credit (LOCs) to Sri Lanka amounting to USD 1850.64 million in sectors including railways, infrastructure, defence, renewable energy, petroleum and fertilizers in the past 10 years," EAM Jaishankar said in a written reply to question put by DMK Lok Sabha MP S Ramalingam.
Under its 'Neighbourhood First' policy, India continues to help Sri Lanka in economic development to overcome economic challenges EAM said in response to a query on short-term and long-term loans granted to Sri Lanka by India, according to ANI.
"Under its 'Neighbourhood First' policy, the Government is committed to developing friendly and mutually beneficial relations with all its neighbours. In line with this policy, India continues to assist Sri Lanka in its economic development and also support it in overcoming its economic challenges," he said.
"In January 2022, India extended a USD 400 million currency swap to Sri Lanka under the SAARC Framework and deferred successive Asian Clearing Union (A.C.U.) settlements till July 6, 2022. A Line of Credit of US$ 500 million was extended to Sri Lanka for importing fuel from India," the minister added.
Jaishankar announced that India has extended a credit facility of US$ 1 billion to purchase food, medicines and other essential commodities from India. The minister explained how Sri Lanka had been given humanitarian aid worth around Rs 6 crore worth of essential medicines, 15,000 litres of kerosene and USD 55 million LoC to purchase Urea fertiliser. "Government of Tamil Nadu has contributed rice, milk powder and medicines worth USD 16 million, as part of the larger Indian assistance effort," Jaishankar said.
"Development assistance under Lines of Credit (LoCs) is extended in accordance with the Indian Development and Economic Assistance Scheme (IDEAS) guidelines of the Government of India. In accordance with these guidelines, the terms of these soft loans are transparent, with a low rate of interest, a moratorium in principal repayment, long repayment period and in-built flexibility," he wrote.
India on Thursday reiterated its decision to stand with the Sri Lankan people during the crisis, saying India has been and will continue to be at the forefront of providing financial assistance to Sri Lanka.
"India has been at forefront of extending economic assistance to Sri Lanka as per what they require and we are one of the countries that have provided the maximum amount of assistance at the time of need. We will continue to stand by the people of Sri Lanka in whatever manner we can," MEA spokesperson Arindam Bagchi said during a media briefing.