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Sri Lanka to utilise India’s fuel credit line from March 

11 Feb 2022

  • Tenders called by Energy Ministry for bids from Indian state-owned companies
BY Buddhika Samaraweera The Energy Ministry is to commence the purchase of fuel and crude oil-related products from mid March under the $ 500 million credit facility provided by India for the same.  The Morning, in October 2021, reported that the Government of Sri Lanka was holding discussions with India to secure a $ 500 million credit facility from India, to be used for the purchase of fuel and crude oil-related products. When contacted by The Morning yesterday (10), Energy Ministry Secretary K.D.R. Olga said that tenders have now been called for the purchase of fuel and crude oil-related products under the relevant credit facility. Accordingly, she said that the relevant purchases would be made from mid March. “As this credit facility is being provided by India, it is necessary to purchase fuel and other related products from state-owned companies in India. Therefore, bids have been invited from the relevant companies for the said purchases. It is expected to commence purchases by mid March,” she added. The Government of Sri Lanka was holding discussions with India to secure the said $ 500 million credit facility from India, to be used for the purchase of fuel and crude oil-related products, and was optimistic that the discussions would prove fruitful. Commenting on the matter, Olga, on an earlier occasion, said that talks were ongoing towards this purpose and that since India had extended several credit facilities to Sri Lanka in the past, they were likely to agree to this one as well.  “India regularly provides credit lines to Sri Lanka, for infrastructure or for purchasing vehicles, and this is a similar credit line extension along those lines,” she explained.


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