India has granted 8 lines of credit (LOCs) totaling US$1850.64 million to Sri Lanka over the past 10 years, Foreign Minister (EAM) S Jaishankar said on Friday.
“The Indian government has granted 08 lines of credit (LOCs) to Sri Lanka in the last 10 years amounting to US$1850.64 million in sectors such as railways, infrastructure, defence, renewable energy, petroleum and fertilizers,” EAM Jaishankar said in a written response asked by DMK Lok Sabha MP S Ramalingam.
India continues to support Sri Lanka in its economic development to meet its economic challenges under its Neighborhood First policy, EAM said in response to a question about short and long-term loans that India is providing to Sri Lanka.
“As part of its ‘Neighborhood First’ policy, the government is committed to building friendly and mutually beneficial relationships with all of its neighbors. In line with this policy, India continues to support Sri Lanka in its economic development and also supports it in meeting its economic challenges,” he said.
“In January 2022, India extended a $400 million currency swap on Sri Lanka under the SAARC framework and deferred consecutive Asian Clearing Union (ACU) settlements until July 6, 2022. Sri Lanka was granted a $500 million credit line million USD granted for fuel import from India,” added the minister.
Jaishankar said that India has granted a US$1 billion credit facility to procure food, medicines and other essential supplies from India.
The minister went on to explain how humanitarian aid was also being provided to Sri Lanka by supplying approximately $16 million worth of essential medicines. said Jaishankar.
“Development Assistance under Lines of Credit (LoCs) is provided in accordance with the guidelines of the Indian Government’s Indian Development and Economic Assistance Scheme (IDEAS). Under these guidelines, the terms of these soft loans are transparent, with low interest rates, a moratorium on principal repayments, long repayment terms and built-in flexibility,” he wrote.
On Thursday, India reiterated its stance of standing by the people of Sri Lanka in times of crisis, saying that India has been and will continue to be at the forefront of expanding economic aid to Sri Lanka.
“India has been at the forefront in expanding economic aid to Sri Lanka as needed and we are one of the countries that provided the greatest amount of assistance at the time of the emergency. We will continue to stand by the people of Sri Lanka in any way we can,” MEA spokesman Arindam Bagchi said during a media briefing.
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