India has extended a USD 1 billion credit line for Sri Lanka by one year, Reuters reported on Tuesday.
The credit line, part of about USD 4 billion in emergency assistance extended by India during the peak of Sri Lanka’s financial crisis early last year, was scheduled to end in March.
Post-negotiations, the credit line was extended until March 2024, Sri Lanka’s Deputy Treasury Secretary Priyantha Rathnayake said.
“There is about USD 350 million left of the credit line that can be utilised as needed. However, given the increase of foreign exchange availability in the market, the need is not as keen as it was last year,” he said.
Reuters reported in March that Sri Lanka was negotiating with India to extend the facility, used so far mainly for medicines and food.