Reserve Bank of India announces $ 500 million loan to Sri Lanka

The Reserve Bank of India (RBI) on Thursday issued a notification to initiate the USD 500 million line of credit provided by India to Sri Lanka, to finance the purchase of petroleum products.

On February 02, the Export-Import Bank of India (Exim Bank) entered into an agreement with the Sri Lankan government for making available a credit line of USD 500 million to Sri Lanka to purchase petroleum products from India.

According to the RBI, out of the total credit by Exim Bank under the agreement, goods, works and services of the value of at least 75 per cent of the contract price shall be supplied by the seller from India.