Energy Minister Udaya Gammanpila told media that an agreement would be signed this afternoon (2) regarding a $ 500 million loan from the Government of India to Sri Lanka to purchase fuel.

The Secretary to the Treasury will sign the agreement on behalf of Sri Lanka and the Board of Directors of the Import and Export Bank of India will sign on behalf of the Indian Government.

Last month, India extended a $500 million-Line of Credit (LOC) to Sri Lanka for urgent fuel imports.

The announcement followed a virtual meeting between Jaishankar and Sri Lanka’s Finance Minister Basil Rajapaksa on Saturday, when they reviewed a $1.5 billion credit facility to help Sri Lanka augment its fast-draining foreign reserves, crucial to importing essentials food items, medicines, and fuel.