India announces that the State Bank of India has extended the tenure of the USD 1 billion Credit Facility provided to Sri Lanka for the procurement of essential items in March 2022.
In response to a request from the Government of Sri Lanka, the State Bank of India (SBI) has taken steps to provide the required facility, Indian High Commission in Colombo said.
In this context, an Amendment Agreement was signed on 30 May 2023 in the presence of the State Minister of Finance, Hon. Shehan Semasinghe, senior officials from the Ministry of Finance of Sri Lanka and officials from High Commission of India, Colombo. Officials from the State Bank of India joined the event from India virtually.
With the signing of the Amendment Agreement, the Credit Facility will be available for use of GOSL for a period of one more year, till March 2024. It may be recalled that since last year, the Facility has been used for urgent procurement of fuel, medicines, food items and industrial raw materials, as per the requirements and priorities of GOSL.
Government of India extended multi-pronged assistance of about USD 4 billion to GOSL last year, through multiple Credit lines and currency support, in line with India’s ‘Neighbourhood First’ Policy. India’s continued support to Sri Lanka is a testament to our abiding commitment to stand with the Government and the people of Sri Lanka towards early economic stabilization and recovery.