India has reached a final agreement to provide a loan of US $ 500 million to resolve the dollar crisis facing Sri Lanka. It is reported that the loan has been approved by the Reserve Bank of India.
The value of this loan will be able to get fuel from India and accordingly will receive fuel from India from April.
This will provide a temporary solution to the massive fuel crisis currently facing Sri Lanka from April.
Sri Lanka needs more than US $ 300 million a month to meet its fuel demand and the monthly cost is likely to rise further as crude oil prices rise in the world market. Accordingly, the $ 500 million loan from India will not even be enough to meet the two-month fuel requirement.
