India comes to the rescue of Sri Lanka, signs $1 billion credit line

India has decided to stand by Sri Lanka in its time of need as part of its “Neighbourhood First” policy. External Affairs Minister S. Jaishankar on Thursday (March 17) said India has signed US$ 1 billion credit line with Sri Lanka that will facilitate supply of essentials to the country in the midst of a worsening economic crisis.

“Neighborhood first. India stands with Sri Lanka. US$ 1 billion credit line signed for supply of essential commodities. Key element of the package of support extended by India,” Jaishankar tweeted.

Also read: Delhi must ensure India-Lanka accord works for Tamils: Jaffna MP

Sri Lanka’s Finance Minister Basil Rajapaksa is in India on a two-day visit. Rajapaksa met Prime Minister Narendra Modi on Wednesday. The external affairs ministry issued a statement later in the day stating that India “would continue to stand with the friendly people of Sri Lanka”. Modi also told Basil Rajapaksa that Sri Lanka plays an important role in India’s “Neighbourhood First” policy.

The Sri Lankan government is under immense pressure from its people, who are demanding President Gotabaya Rajapaksa to resign for failing to bring the country’s economy on track.