Sri Lanka seeks US$500 million loan from India for fuel costs amid crisis

India announced the delivery of around 40,000 metric tonnes of petrol to Sri Lanka only days after supplying 40,000 metric tonnes of diesel under the Indian credit line to assist in alleviating the acute fuel shortfall.

Sri Lanka seeks US$500 million loan from India for fuel costs amid crisis
Sri Lanka seeks US$500 million loan from India for fuel costs amid crisis. (Representational image) Credits: istockphoto.com

The Sri Lankan Cabinet has accepted a US$ 500 million loan from the Exim Bank of India for the purchase of petroleum products, despite the island nation's dire foreign exchange crisis.

As the nation confronts a serious foreign exchange crisis to pay for imports, Sri Lanka has been considering several options to enable efforts to prevent fuel pumps from turning dry.