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India has provided a 1 billion dollar credit line to which country for essential imports?
A)
Myanmar
B)
Cambodia
C)
Philippines
D)
Sri Lanka

Correct Answer :   Sri Lanka


In a move to assist Sri Lanka in its recovery from a severe financial crisis, India has extended a credit line of one Billion USD to its neighbouring country by one year.

* The credit line which was a part of the 4 billion USD emergency assistance provided by India during the peak of Sri Lanka's crisis last year(2022), was originally set to end in March but has now been extended until March 2024.
 
* The extension will provide Sri Lanka with backup funds to pay for essential imports, according to Sri Lanka's Deputy Treasury Secretary, Priyantha Rathnayake.

* The initiative to extend the credit line, in which almost 350 million USD is still unutilised, denotes India’s continued commitment to stand with the people of Sri Lanka in facing the challenges of economic crisis and moving towards sustainable economic recovery.
 
* Sri Lanka, which faced its worst financial crisis in decades, experienced slump in its forex reserves last year and struggled to pay for crucial imports such as fuel, cooking gas, and medicine.

* However, the situation has improved since then, with Sri Lanka securing a nearly 3 billion USD bailout package from the International Monetary Fund in March and initiating debt restructuring talks with key bilateral creditors including India, Japan, and China..

Source : AIR

Published On : May 10, 2023
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