Fuel pumps can dry like Lanka to produce a $ 500 mn Indian fuel credit line in April
Amid fears of Sri Lanka may run out of fuel (again) by the end of this month, officials from both parties negotiate improvements to the credit lane.
Sri Lankan is expected to spend $ 500 million in fuel assistance provided by India to mitigate the island state power crisis with 120,000 tons of diesel delivery and 40,000 tons of gasoline for the next two weeks. India is scheduled to send three 40,000 tons of diesel delivery on April 15, 18 and 23, with the same amount of gasoline which will be sent on April 22. India on Wednesday sent two more fuel consignments to Sri Lanka – 36,000 tons of gasoline and 40,000 tons of diesel.
Amid fears of Sri Lanka may run out of fuel (again) by the end of this month, officials from both parties negotiate improvements to the credit lane. If the conversation does not succeed Sri Lanka will only be allowed to reuse the credit path after payment is completed for purchases that have been made.
So far India has provided 270,000 tons of fuel to Sri Lanka under the first policy of its environment to help her overcome the worst economic crisis in decades. Promising foreign currency reserves – down from $ 2.31 billion in February to $ 1.93 in March – has left Sri Lanka without a way to pay billions in foreign debt or for essential such food and fuel, pushing large protests Make.
The $ 500 million credit path for the fuel provided by India is an additional $ 2.5 billion provided for other essence purchases, such as food and medicine.
Sri Lanka faced the worst economic crisis since obtaining independence from England in 1948. The crisis has resulted in a supply of food and rare fuel, along with recording inflation and longing. The rating agency has warned of the potential default in Sri Lankan foreign debt, and the authorities cannot increase more commercial loans due to a reduction in credit ratings.
Public anger has encouraged almost all cabinet ministers to stop, and a number of parliamentarians left the Government of President Gotabaya Rajapaksa. The protesters have asked to rajapaksa to resign.
On Thursday, an external Ministry spokesman India said Sri Lanka was a neighbor and close friend. He also said that New Delhi carefully watched the development in the island country and “stands ready to continue working with Sri Lanka for post-covid fast economic recovery.”
