Amidst the shortage of all essential commodities in the island, India has announced a $ 900 million loan to Sri Lanka to replenish depleted foreign reserves and import food.
Central Bank Governor Ajith Nivard Cabraal said talks are underway to obtain a $ 1 billion loan from India to import goods.
Indian High Commissioner to Sri Lanka Gopal Bagle met with Cabraal on Thursday and expressed India’s strong support to Sri Lanka by providing more than US $ 900 million.
This includes a $ 500 million Asian Clearing Union (ACU) deferral of debt and a $ 400 million transfer.
Commenting on India’s move, analysts here said that Indian aid could help double Sri Lanka’s reserves, which were announced at the end of December.
Sri Lanka is currently facing a shortage of almost all essential commodities due to the shortage of dollars to pay for imports.
In addition, steps have been taken to turn off the power during peak hours as it is not even possible to get the fuel needed to operate the turbines.
