CURRENT AFFAIRS

Detailed explanation-1: -The Sri Lankan Cabinet has approved seeking a 500 million dollar loan from the Exim Bank of India for the purchase of petroleum products amid a severe foreign exchange crisis in the island nation.

Detailed explanation-2: -India has emerged as the top lender to Sri Lanka in 2022, disbursing USD 377 million in loans to the island nation as it grappled with an unprecedented political crisis and economic turmoil, according to the Verite Research think-tank. The Asian Development Bank follows India with USD 360 million in loans.

Detailed explanation-3: -In order to strengthen Sri Lanka’s food, health and energy security, the Government of India extended a concessional loan of USD 1 billion to the Government of Sri Lanka, through the State Bank of India, on March 17, 2022.

Detailed explanation-4: -The International Monetary Fund has preliminarily agreed to extend a 48-month $2.9 billion loan to Sri Lanka to help restore economic stability to the crisis-hit South Asian country.

Detailed explanation-5: -The Line of Credit – LOCs also helps to promote exports of Indian goods and services, as 75% of the value of the contract must be sourced from India. The projects under LOCs are spread over different sectors (Agriculture, Infrastructure, Telecom, Railway, Transmission/Power, Renewable Energy, etc.).