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A US$500 million loan agreement has been signed between India and Sri Lanka

The Indian government's support for Sri Lankan fuel imports comes as the country faces its worst financial crisis in years, with reserves reaching US$3.1 billion in December


India extended a US$500 million line of credit to Sri Lanka on Wednesday to purchase petroleum products. Sri Lanka is currently experiencing its worst foreign exchange and energy crisis in decades.

In the presence of Sri Lankan finance minister Basil Rajapaksa and Indian envoy Gopal Baglay, India's Export Import (Exim) Bank and the Sri Lankan government signed an agreement for the line of credit. Rajapaksa has been in charge of his government's efforts to secure financial aid from India in order to get through the crisis.

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