Finance Minister Basil Rajapaksa said that no conditions were attached to the USD 1 billion credit facility from India that will be used exclusively to import food and other essential commodities including medicine and fuel from India.
He told the media upon returning to the island on Friday after concluding his two-day official visit to India, that he made this statement to end the negative rumours.
Accompanied by Secretary to the Treasury and Ministry of Finance S. R. Attygalle and High Commissioner of India to Sri Lanka, Gopal Baglay, Minister Rajapaksa left for New Delhi on Tuesday, March 15, on an invitation extended by the Indian Government.
He called on Indian Prime Minister Narendra Modi and Foreign Secretary, Shri Harsh Vardhan Shringla.
The Finance Minister on Wednesday briefed the Indian Leader on the initiatives taken by both countries to enhance bilateral economic cooperation and appreciated the support extended by India to boost Sri Lanka’s economy.
The talks also touched on Sri Lanka’s move towards organic agriculture and how India could assist with technical know-how and fertiliser products for natural farming.
Prime Minister Modi called Sri Lanka “a close and friendly neighbour” and assured the Finance Minister Rajapaksa that India would always stand with Sri Lanka.
Minister Rajapaksa subsequently met Indian External Affairs Minister Dr. S. Jaishankar, Finance and Corporate Affairs Minister Nirmala Sitharaman and India’s Deputy National Security Advisor Shri Vikram Misri.
The Finance Minister sealed the USD 1 billion credit line with India on March 17 to import essential items, including fuel to prevent a shortage due to the US dollar crisis.
Among the key areas discussed during his visit were agriculture, renewable energy, digitalisation, tourism and fisheries.