Sri Lanka expects another $ 1 billion loan from India

Sri Lanka seeks an additional $1 billion credit line from India, sources say.

The island nation is struggling to pay for essential imports of food and fuel after a 70% drop in foreign exchange reserves since January 2020 led to currency devaluation and efforts to seek help from global lenders.

New Delhi has indicated it would meet the request for the new line, to be used for importing essential items such as rice, wheat flour, pulses, sugar and medicines, one source quoted as saying by Reuters.

Ter Basil Rajapaksa signed the earlier credit line of $1 billion this month in the Indian capital of new Delhi to help pay for critical imports read moreIndian Foreign Minister Subrahmanyam Jaishankar.