Medicines valued at US $ 125Mn imported on Indian credit line

By Kelum Bandara

Medicines valued at US $ 125 million have been imported using the Indian Line of Credit, an informed source said.
India offered US $  1 billion Indian credit line to Sri Lanka for essential items.

According to sources, the Indian High Commission has approved contracts related to medicines at an average rate of more than US $ 15 million a month since the credit line became operational.

“Contracts worth US $ 38 million were approved in November alone. Drugs and medical supplies under this credit line include several vital medicines as well.

The Sri Lankan Government has the flexibility to decide on items to be brought under the Indian credit line as per its priorities and requirements.

 A total amount of USD 200 million has been earmarked by the Sri Lankan government for medicines under this credit line. Around 60% of the USD 1 billion credit line has been approved to be used for the import of various items by Indian authorities. These approvals are based on requests made by Sri Lanka.

At a time when inflows and credit support to Sri Lanka have been shrinking since the announcement of the debt standstill in April this year, the Indian credit line has proved to be a lifeline for the people. In fact, the facility became operational after the announcement, the sources said.