External Affairs Minister Jaishankar said in a written reply, “The Government of India has extended 08 Lines of Credit (LoC) to Sri Lanka in the last 10 years in sectors including Railways, Infrastructure, Defence, Renewable Energy, Petroleum and Fertilizers amounting to US$ 1850.64 million. extended.” DMK Lok Sabha MP S Ramalingam questioned.
India continues to assist Sri Lanka’s economic development to address its economic challenges under its ‘neighbourhood first’ policy, the External Affairs Minister said in response to a question on India’s short-term and long-term loans to Sri Lanka.
“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’s economic development as well as its It also supports him in overcoming economic challenges,” he said.
“In January 2022, India made a currency swap of USD 400 million to Sri Lanka under the SAARC Framework and suspended successive Asian Clearing Union (ACU) settlements till July 6, 2022. Line of credit of USD 500 million to Sri Lanka To import fuel from India,” the minister said.
Jaishankar informed that India has provided a line of credit of USD 1 billion for the purchase of food, medicines and other essential items from India.
The minister further explained how Sri Lanka was also provided with essential medicines, 15,000 liters of kerosene and USD 55 million as a gift of about Rs.6 crore in humanitarian aid. LoC “The Tamil Nadu government has contributed rice, milk powder and medicines worth USD 16 million as part of the larger Indian aid effort,” Jaishankar said for the procurement of urea fertiliser.
“Development assistance under Lines of Credit (LoC) is provided as per Indian Development and Economic Assistance Scheme (IDEAS) guidelines of Government of India. As per these guidelines, the terms of these soft loans are transparent, with low rate of interest. , moratorium in principal repayment, long repayment period and inherent flexibility,” he wrote.
India on Thursday reiterated its stand to stand with the people of Sri Lanka during the crisis, saying that India has been at the forefront of providing financial assistance to Sri Lanka and will continue to do so.