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New Delhi: Amid a severe currency crisis, Sri Lanka has asked the Indian government to provide them with a $ 500 million line of credit so that it can purchase crude oil.
In the alarming voice of Uday Gammanpil, Sri Lanka’s Energy Minister recently said that the country’s current fuel availability can only be ensured until January 2022.
Sumit Wijesinghe, chairman of the state-owned Ceylon Petroleum Corporation (CPC), told a local news site. newsfirst.lkthat it is only with the intervention of the Indian High Commission in Sri Lanka that the island nation will be able to obtain a loan from the Indian government. According to a PTI report, CPC currently owes US $ 3.3 billion to large state-owned banks, that is, the Bank of Ceylon and the People’s Bank.
“We are currently working with the Indian High Commission to obtain a loan (credit line of US $ 500 million) under the India-Sri Lanka Economic Partnership Agreement,” Sumita Vijesinghe was quoted as saying. newsfirst.ik in his report.
He also said that the loan will be used to purchase gasoline and diesel fuel.
The energy ministers of India and Sri Lanka are expected to sign the loan agreement in due course, SR Finance Secretary Attigalla said. newsfirst.ik.
Rising global oil spending has forced Sri Lanka to spend extra money on oil imports this year, according to a PTI report. The country’s oil invoice jumped 41.5% to $ 2 billion in the first seven months of this year compared to last year.