HomeNews40,000 MT of diesel under Indian assistance handed over to Sri Lanka

40,000 MT of diesel under Indian assistance handed over to Sri Lanka

India’s High Commissioner to Sri Lanka Gopal Baglay today handed over a fuel consignment of 40,000 metric tonnes from the Indian Oil Corporation (IOC) to Sri Lanka’s Energy Minister Udaya Gammanpila.

india hands over fuel sri lanka - Dhinasari Tamil
India’s High Commissioner to Sri Lanka Gopal Baglay today handed over a fuel consignment of 40,000 metric tonnes from the Indian Oil Corporation (IOC) to Sri Lanka’s Energy Minister Udaya Gammanpila.

Press Release by High Commission of India, Colombo :
A consignment of 40,000 MT of diesel under Indian assistance through Line of Credit of US$500 million was handed over by High Commissioner Gopal Baglay to the Energy Minister of Sri Lanka, Hon’ble Gamini Lokuge in Colombo today. This is the fourth consignment under the fuel Line of Credit, with previous deliveries on 16 March, 20 March and 23 March respectively. With today’s consignment, the total fuel delivered to the people of Sri Lanka over the last 50 days amounts to nearly 200,000 MT including a consignment of 40,000 MT by Indian Oil Corporation outside the line of credit facility in February 2022.

  1. Speaking on the occasion, High Commissioner Gopal Baglay characterized the fuel deliveries as a concrete manifestation of India’s commitment to the people of Sri Lanka in the current circumstances in line with the Neighbourhood First Policy. Energy Minister Gamini Lokuge thanked the Government of India for the fuel consignments. Earlier, on 23 March, Sri Lankan Prime Minister Mahinda Rajapaksa thanked Prime Minister Narendra Modi for the recent Indian economic development assistance and credit facilities to Sri Lanka and said he expected the Indian Government would pay special attention to Sri Lanka’s development in the future as well.
  2. It may be recalled that the Export Import Bank of India and the Government of Sri Lanka signed a US$ 500 million Line of Credit Agreement for purchase of petroleum products on 2 February 2022. The Agreement was signed by Treasury Secretary, Mr. S.R. Attygalle from the Sri Lankan side and Chief General Manager of EXIM Bank, Mr. Gaurav Bhandari from the Indian side.
  3. Further, in response to a separate and urgent request from the Government of Sri Lanka, extension of a credit facility of USD 1 billion for supply of essential items including food and medicines has been finalized and the first shipments of rice under this facility is expected to reach Sri Lanka soon. Earlier in January this year, India had provided financial assistance to Sri Lanka that included a credit swap of US$ 400 million and deferment of an Asian Clearing Union payment of over US$ 515 million. In cumulative terms, Indian support to the people of Sri Lanka in the first quarter of 2022 is in excess of US$ 2.5 billion.
  4. In view of the urgent nature of Sri Lanka’s requirement, India worked overtime to expeditiously finalise and start implementing both the lines of credit, within weeks.
  5. The Government of India also continues to encourage efforts towards medium to long term capacity creation through enhanced Indian investment in Sri Lanka in key sectors that include ports, renewable energy, manufacturing, etc.
  • Colombo, 2 April 2022

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