Sri Lanka Solicits 500 Million Dollar Loan From India

19 October 2021 Current Affairs:The Government of Sri Lanka has sought a USD 500 million credit line from India to pay for its crude oil purchases. 

♦ The country is facing a severe foreign exchange crisis in the island nation after the pandemic hit the nation’s earnings from tourism and remittances.
♦ The USD 500 million credit line is part of the India-Sri Lanka economic partnership arrangement. 
♦ The funds would be used for purchasing petrol and diesel requirements.
♦ The country’s GDP declined by a record 3.6 per cent in 2020, and its foreign exchange reserves fell by over a half in a year to USD 2.8 billion. 
♦ This led to a 9 per cent reduction of the Sri Lankan rupee against the dollar, making imports more expensive.
♦ Sri Lanka Capitals is Sri Jayawardenepura Kotte, and Currency is Sri Lankan rupee.
♦ Sri Lanka Prime Minister is Mahinda Rajapaksa and Sri Lanka President is Gotabaya Rajapaksa

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