Business

India to grant $ 900 m to Sri Lanka 

  • Indian High Commissioner confirms grant during meeting with Cabraal 

BY Imsha Iqbal 

India is to grant approximately $ 900 million to forex-starved Sri Lanka due to the economic and humanitarian crisis that Sri Lanka has encountered amidst the ongoing pandemic. 

Accordingly, Indian High Commissioner to Sri Lanka Gopal Baglay yesterday  (13) confirmed that this is to be granted as financial assistance to the country. 

Baglay noted the above during a meeting with Central Bank of Sri Lanka (CBSL) Governor Ajith Nivard Cabraal.

Cabraal announced this on his official Twitter handle yesterday, saying: “Had an excellent discussion with the Indian High Commissioner to Sri Lanka H.E. Gopal Baglay at my office this morning where he confirmed the SAARC swap by RBI (Reserve Bank of India) and other forms of bilateral co-operation.”

Thus, the aforesaid grant includes a currency swap of $ 400 million by way of a SAARC swap facilitated by the RBI.

Earlier this month, The Sunday Morning learnt that apart from the $ 400 million swap facility, Sri Lanka sought a $ 500 million credit line for fuel as well as another $ 1 billion credit line for food and medical purchases.