Sri Lanka receives another diesel shipment under Indian credit line

A consignment of 40,000 metric tonnes of diesel procured under Indian assistance through a Line of Credit of USD 500 million arrived in Sri Lanka today (April 02).

The diesel shipment was ceremoniously handed over by Indian High Commissioner Gopal Baglay to Energy Minister Gamini Lokuge in Colombo.

This is the fourth consignment of fuel Sri Lanka received under Line of Credit from India, with previous deliveries on 16 March, 20 March and 23 March respectively.

With today’s consignment, the total fuel delivered to Sri Lanka over the last 50 days amounts to nearly 200,000 metric tonnes, including a consignment of 40,000 metric tonnes by Indian Oil Corporation outside the line of credit facility in February this year, the Indian High Commission in Colombo said in a statement.

Speaking on the occasion, High Commissioner Gopal Baglay characterized the fuel deliveries as a concrete manifestation of India’s commitment to the people of Sri Lanka in the current circumstances in line with the Neighbourhood First Policy.

Energy Minister Gamini Lokuge meanwhile extended his gratitude to the government of India for the fuel consignments. 

Earlier, on 23 March, Sri Lankan Prime Minister Mahinda Rajapaksa thanked Prime Minister Narendra Modi for the recent Indian economic development assistance and credit facilities to Sri Lanka, stating that he expected the Indian government would pay special attention to Sri Lanka’s development in the future as well.

It may be recalled that the Export Import Bank of India and the government of Sri Lanka signed a US$ 500 million Line of Credit Agreement for purchase of petroleum products on 02 February. The Agreement was inked by Treasury Secretary S.R. Attygalle from the Sri Lankan side and Chief General Manager of EXIM Bank Gaurav Bhandari from the Indian side.

Further, in response to a separate and urgent request from the Government of Sri Lanka, extension of a credit facility of USD 1 billion for supply of essential items including food and medicines has been finalized and the first shipments of rice under this facility is expected to reach Sri Lanka soon.

Earlier in January this year, India had provided financial assistance to Sri Lanka that included a credit swap of USD 400 million and deferment of an Asian Clearing Union payment of over USD 515 million. In cumulative terms, Indian support to the people of Sri Lanka in the first quarter of 2022 is in excess of USD 2.5 billion. 

In view of the urgent nature of Sri Lanka’s requirement, India worked overtime to expeditiously finalise and start implementing both the lines of credit, within weeks, the Indian High Commission noted in its statement.

It added that the Indian government also continues to encourage efforts towards medium to long term capacity creation through enhanced Indian investment in Sri Lanka in key sectors that include ports, renewable energy, manufacturing, etc.

More fuel supplies delivered by #India to #SriLanka! A consignment of 40,000 MT of diesel under #Indian assistance through Line of Credit of $500 mn was handed over by High Commissioner to Hon'ble Energy Minister Gamini Lokuge in #Colombo today. (1/2) pic.twitter.com/j8S2IsOw29

— India in Sri Lanka (@IndiainSL) April 2, 2022