Sri Lanka Crisis: 40,000 Tonnes Of Diesel Under $1 Bn Credit Line By India Reaches Island Nation

Sumit Wijesinghe, Chairman of Ceylon Petroleum Corporation, said , “India has distributed 40,000 tonnes of diesel to the troubled Sri Lanka on Saturday."

A consignment of 40,000 MT of diesel was handed over by High Commissioner to Energy Minister Gamini Lokuge in Colombo. (Image: Twitter/@IndiainSL)

New Delhi: Amid the economic crisis in the nation, India has extended a helping hand to Sri Lanka as a ship carrying 40,000 tonnes of diesel has reached the island nation on Saturday.

According to a report by Hindustan Times, Sumit Wijesinghe, Chairman of Ceylon Petroleum Corporation, said , “India has distributed 40,000 tonnes of diesel to troubled Sri Lanka on Saturday."

More fuel supplies delivered by #India to #SriLanka! A consignment of 40,000 MT of diesel under #Indian assistance through Line of Credit of $500 mn was handed over by High Commissioner to Hon'ble Energy Minister Gamini Lokuge in #Colombo today. (1/2) pic.twitter.com/j8S2IsOw29

— India in Sri Lanka (@IndiainSL) April 2, 2022

The diesel shipment is part of an additional $500 million in fuel assistance for the Sri Lankan government. Sri Lanka is struggling to deal with its worst economic crisis in decades. The prices of food and essential commodities are skyrocketing. There has been a shortage of petrol and diesel in the country this week, forcing the deployment of armed soldiers at filling stations.

According to the report, a consignment of 40 thousand tonnes of rice is also being prepared to be sent from India to Sri Lanka. The two countries signed a loan agreement worth $1 billion last month. After this, this will be the first major food aid from India to Sri Lanka. It is believed that with this help, the government in Sri Lanka will be successful to some extent in bringing down food prices in the ongoing crisis.

"Rice loading has started in southern ports," said B.V. Krishna Rao, managing director of Pattabhi Agro Foods, which is supplying rice to Sri Lanka State Trading (General) Corp under the Indian Credit Facility Agreement as reported by Reuters.

"We are first loading containers for prompt shipments and vessel loading will start in a few days."

Sri Lankan President Gotabaya Rajapaksa has declared a nationwide public emergency amid ongoing protests across the country over the economic crisis. Rajapaksa issued a special gazette notification late Friday night declaring a public emergency in Sri Lanka with immediate effect from April 1.