India extends credit line to Sri Lanka

[TamilNet, Friday, 16 July 2004, 17:23 GMT]
The Government of India has extended a special credit line with a value of US$150 million to Sri Lanka on request from Sri Lanka's President Chandrika Kumaratunga enabling Sri Lanka to import petroleum products from India, a statement from Ms.Kumaratunge's office said today.

The loan is repayable over a period of seven years and includes a one-year grace period.

The statement further said that the Government of India has also offered highly concessional interest terms and that the Indian credit facility is expected to considerably ease the additional pressure on import prices.

Further the exchange rate is expected to strengthen as a consequence of this Indian loan.

The Ceylon Petroleum Corporation and IOC will begin using this Indian facility soon, the statement added.