Sri Lanka seeks India loan for import of essential goods
Sri Lanka is negotiating a USD 1 billion loan facility from India to import goods from India, amidst a shortage of almost all essential goods. Governor of the Central Bank Ajith Nivard Cabraal said that Sri Lanka is negotiating another loan from China as part of an attempt to restructure its debt repayment. The loan amount has not been decided. Last week, President Gotabaya Rajapaksa told the visiting Chinese foreign minister Wang Yi that debt restructuring would help Sri Lanka. Cabraal defended the Central Bank`s decision to sell more than half of its gold reserves last month in order to supplement the foreign exchange reserves. The Central Bank economic indicators dated January 7 showed that gold reserves had fallen to US dollars 175 million in December from 382 million. The gold-selling is said to be part of reserves management adopted by the Central Bank and could be brought to the bank in the future. The government officials said the USD one billion loans from India would be restricted to food imports. Agriculturists have warned of food shortages in the country for the next two months.
Sri Lanka is negotiating a USD 1 billion loan facility from India to import goods from India, amidst a shortage of almost all essential goods. Governor of the Central Bank Ajith Nivard Cabraal said that Sri Lanka is negotiating another loan from China as part of an attempt to restructure its debt repayment. The loan amount has not been decided. Last week, President Gotabaya Rajapaksa told the visiting Chinese foreign minister Wang Yi that debt restructuring would help Sri Lanka. Cabraal defended the Central Bank`s decision to sell more than half of its gold reserves last month in order to supplement the foreign exchange reserves. The Central Bank economic indicators dated January 7 showed that gold reserves had fallen to US dollars 175 million in December from 382 million. The gold-selling is said to be part of reserves management adopted by the Central Bank and could be brought to the bank in the future. The government officials said the USD one billion loans from India would be restricted to food imports. Agriculturists have warned of food shortages in the country for the next two months.
