Mumbai: Export-Import Bank of India [Exim Bank] has, on behalf of the Government of India, extended a Line of Credit [LOC] of USD 318 million to the Government of the Democratic Socialist Republic of Sri Lanka [Government of Sri Lanka] for financing procurement of (i) Rolling Stock for the Sri Lanka Railway [USD 177 million]; (ii) Upgrading of the railway track from Maho – Anuradhapura- Omanthai or any other sector [USD 136 million]; and (iii) Utilization of the balance amount as may be agreed between the Government of Sri Lanka and the Government of India. The LOC Agreement to this effect was signed in Colombo, Sri Lanka on Tuesday, June 6, 2017, in the presence of Mr. Arindam Bagchi, Deputy High Commissioner of India in Sri Lanka and Mr. Nihal Somaweera, Secretary, Ministry of Transport and Civil Aviation, Government of Sri Lanka, by Mr. David Rasquinha, Managing Director, on behalf of Exim Bank and Dr. R. H. S. Samarathunga, Secretary, Ministry of Finance and Mass Media, on behalf of the Government of Sri Lanka.
With the signing of the above LOC Agreement for USD 318 million, Exim Bank, till date, has extended seven Lines of Credit to the Government of Sri Lanka, on behalf of the Government of India, taking the total value of LOCs extended to USD 1534.16 million. Projects covered under the LOCs extended to the Government of Sri Lanka include the export of petroleum products, supply of equipment, upgradation and laying of railway tracks, supply and installation of signaling and communication equipment and procurement of railway rolling stocks.
With the signing of this LOC Agreement, Exim Bank has now in place 219 Lines of Credit, covering 61 countries in Africa, Asia, Latin America and the CIS, with credit commitments of around USD 16.89 billion, available for financing exports from India. Besides promoting India’s exports, Exim Bank’s LOCs enable demonstration of Indian expertise and project execution capabilities in emerging markets.