No conditions for USD 1 billion Indian credit facility - Minister Basil

Finance Minister Basil Rajapaksa says no conditions have been set for the USD 1 billion credit facility received from India.

He made this remark speaking to the media upon returning to the island after concluding his two-day official visit to India.

Accompanied by Secretary to the Treasury and Ministry of Finance S. R. Attygalle and High Commissioner of India to Sri Lanka Gopal Baglay, Minister Rajapaksa departed for New Delhi on Tuesday (March 15), on an invitation extended by the Indian government.

He called on Indian Prime Minister Narendra Modi and Foreign Secretary, Shri Harsh Vardhan Shringla. Later, the Finance Minister briefed Indian PM Modi on initiatives being taken by both countries to increase bilateral economic cooperation and conveyed his thanks for the support extended by India for the Sri Lankan economy. Minister Rajapaksa subsequently met with Indian External Minister Dr. S. Jaishankar, Finance and Corporate Affairs Minister Nirmala Sitharaman and India’s Deputy National Security Advisor Shri Vikram Misri.

On Thursday (March 17), the Finance Minister sealed a USD 1 billion credit line with India to help ease crippling shortages of essential items, including fuel, food and medicine.

The USD 1 billion loan facility, which formed the key component of the four-pillar economic cooperation arrangement agreed between India and Sri Lanka during Minister Rajapaksa’s visit to New Delhi in December last year, was extended to the Government of Sri Lanka for procurement of food, medicines and other essential items.

The signing ceremony was held at the Ministry of Finance in New Delhi this afternoon in the presence of Finance Minister Basil Rajapaksa, the External Affairs Minister of India Dr. S. Jaishankar and the Indian Finance Minister Smt. Nirmala Sitharaman. Managing Director of the State Bank of India Shri Ashwini Kumar Tewari and the Bank’s General Manager Shri Vinod Kumar were also present on this occasion.

Secretary to the Ministry of Finance S. R. Attygalle signed the agreement on behalf of the Government of Sri Lanka, with Deputy General Manager Shri Pushkar Jha signing on behalf of the State Bank of India.

Upon returning to the island, the lawmaker told media that the Indian Prime Minister has shown keen interest in President Gotabaya Rajapaksa’s efforts to promote organic farming on the island nation.

Further, PM Narendra Modi reiterated all the support for Sri Lanka, both economically and socially, he added.

India also agreed to provide required quantities of nano fertilizer to Sri Lanka, despite the shortage it is having at home, Minister Rajapaksa went on.

When asked about the USD 1 billion credit facility, the Finance Minister it is effective from Thursday itself.

India facilitated this credit line of USD 1 billion for the purchase of food and other essential items for the people, especially for the upcoming Sinhala and Tamil New Year, he added.

In response to a question on the conditions underlined for the credit facility, Minister Rajapaksa said that there are none, adding that the loan needs to be repaid in installments in three years.