BUSINESS

Lanka extends credit score line with India by $200mn

Sri Lanka has prolonged a credit score line with India by $200 million in boom to score emergency gasoline shares, the country’s energy and vitality minister said on Monday, with four shipments as a result of attain in May possibly well.

Colombo modified into once moreover in talks with Soundless Delhi over extending the credit score line by an additional $500 million, minister Kanchana Wijesekera told a news conference.

Hit arduous by the pandemic and immediate of income after Gotabaya Rajapaksa’s executive imposed steep tax cuts, the island nation is now moreover severely immediate of foreign alternate and has approached the International Monetary Fund for an emergency bailout.

Rampant inflation and shortages of imported meals, gasoline and medicines has ended in weeks of sporadically violent protests.

Sri Lanka has extinct $400 million, on extra than one shipments in April, of the $500 million credit score line prolonged by India earlier this year, Wijesekera said. Two gasoline shipments will doubtless be paid for from the final funds in May possibly well.

“The Indian credit score line modified into once prolonged by $200 million lately and this might increasingly be utilised for four shipments in May possibly well. Talks are continuing for a extra $500 million with India so in complete the credit score line will doubtless be $1.2 billion,” Wijesekera said.

Alternatively, Sri Lanka continues to be facing payment challenges for gasoline imports with the inform-elope Ceylon Petroleum Company (CPC) owing $235 million for shipments already got, whereas about $500 million extra will doubtless be needed to pay for letters of credit score maturing over the next six weeks, he added.

Sri Lanka will moreover need bucks to pay for mistaken oil shipments to supplement imports from India.

“Now we absorb made procurement plans till June but we nonetheless must unravel how to score ample quantities of foreign alternate to rep funds,” Wijesekera said.

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