India to assist Sri Lanka with $500 million to buy fuel
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Sri Lankan Foreign Minister GL Peiris said that India has promised to provide $500 million to buy fuel as the island nation is struggling with its economy. This is the second time India is making such a financial assistance in fuel credit.
Sri Lanka is facing the worst financial crisis in history and the people are turning against the government. After fuel started running low, the country saw several intense mob protests. A major road leading to Colombo saw tyres set on fire by motorists, reported AFP.
The state-run Ceylon Petroleum Corporation raised the price of 92 octanes to LKR 338 per litre which triggered the protests. This is the fifth time the company hiked prices in six months.
India has so far provided Sri Lanka with nearly 400,000 tons of fuel. The first line of credit was used up earlier this month after a shipment of 120,000 tons of diesel and 40,000 tons of petrol, reported HT. Two credit lines worth over $2 billion have been extended by India to the neighbouring nation for food. Rice and medicines have also been sent to Sri Lanka.
Finance minister Nirmala Sitharaman met IMF chief Kristalina Georgieva and urged to provide financial assistance to the island nation. Sri Lanka had reached out to India seeking help in gaining international support. The country has already defaulted on its external debt of over $51 billion. Sri Lanka hopes to secure at least $4 billion in bailout with the help of the IMF.
