As the foreign currency crisis looms some influential business figures are alleged that they are trying to utilize 75 percent of 1 Billion USD Indian credit line provided for essential foods and medicine to utilize for steel imports sources said.
Businessmen linked to the importation of iron and steel needed for the construction industry have influenced to the political decision makers to consider on their request. They have pointed out that steels are highly needed to continue constructions industry. However India provided the facility to import much needed food items and drugs, which are shortage islandwide.
So far, about $ 250 million has been spent on these loans. The business community is trying to import the remaining $ 750 million worth of iron ore and steel from the loan scheme, the sources said.
The sources said that a team trying to do this has also held discussions with the State Bank of India, which manages the loan.
They businessmen have pointed out that a large number of food suppliers and pharmaceutical suppliers and importers are already importing them through their allies through methods such as Undial and Hawala, and that they should be given this opportunity as it costs a lot to import iron into the construction industry through such methods.
The sources said that they have been making this attempt since Basil Rajapaksa was the Finance Minister and they have also brought this proposal to the former Minister.
