Skip to content

Sri Lanka Secures $1 Billion Credit Facility From India

  • SBI, Government of Sri Lanka sign pact for essential supplies
  • Facing default, island-nation in talks with IMF for bailout
Residents wait to buy Liquefied Petroleum Gas (LPG) gas, in Colombo on March 14.

Residents wait to buy Liquefied Petroleum Gas (LPG) gas, in Colombo on March 14.

Photographer: Ishara S. Kodikara/AFP/Getty Images

Sri Lanka firmed up a $1 billion credit line from neighboring India, a move that will ease a foreign exchange shortage for the nation even as it inches closer to an International Monetary Fund bailout. 

The agreement, which includes aid for essentials like food and medicines, was signed between State Bank of India and the Sri Lankan government during Finance Minister Basil Rajapaksa’s visit to India Thursday.