Srilanka Seeks Loan From India
- 07-Jun-2022
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Srilanka Seeks Loan From India
Sri Lanka has sought a $55 million loan from India for the procurement of urea amidst its worst economic crisis threatening a severe food shortage, an official said on June 7.Prime Minister Ranil Wickremesinghe had recently warned of a food crisis in the island nation due to the ongoing economic crisis. “The Cabinet has approved a proposal by the Prime Minister to sign an agreement with India to purchase urea for agriculture,” an official said.
The government said that the Indian government has agreed to provide the $55 million loan through the Export-Import Bank of India. The loan is being obtained for the procurement of urea for the 2022/23 ‘Maha’ harvest season.
Mr. Wickremesinghe has said that within five to six months, the current agriculture shortages could be salvaged if swift action was taken to address the shortages faced by the farmers. The country is facing a near 50% crop loss due to a decision of President Gotabaya Rajapaksa last year to ban chemical fertilizer imports.
