Sri Lanka has signed USD 1 billion credit line India for procurement of food, medicines and other essential items, amid the island nation's worsening economic crisis.
The State Bank of India (SBI) and the Sri Lankan government signed the agreement during Sri Lankan Finance Minister Basil Rajapaksha's two-day visit to India.
Earlier today, Rajapaksa met with Union Finance Minister Nirmala Sitharaman and External Affairs Minister S Jaishankar in New Delhi. The Ministers discussed wide-ranging issues of mutual interest and economic cooperation.
On Wednesday, Rajapakasa also met Prime Minister Narendra Modi and thanked him for extending supporting the Sri Lankan economy.
PM Modi spoke about the central role that Sri Lanka occupies in India's 'Neighbourhood First' policy and its S.A.G.A.R (Security and Growth for all in the Region) doctrine. Modi reiterated that India would continue to stand with the friendly people of the neighbouring country.
Sri Lanka has seen its national currency getting devalued significantly against major international currencies, in addition to crippling fuel and gas shortages and daily electricity cuts.
India has continued to assist its neighbouring country in its fight against the COVID-19 pandemic, and to mitigate its adverse impact and its developmental priorities.
Espousing India's Neighborhood first policy, Jaishankar said that India stands with Sri Lanka.
"Neighborhood first. India stands with Sri Lanka. USD 1 billion credit line signed for the supply of essential commodities. Key element of the package of support extended by India," Jaishankar tweeted.