Sri Lanka has sought an additional credit line of $1 billion from India to import essentials amid its worst economic crisis in decades, two sources said on Monday, as the Indian foreign minister began talks with the government of its neighbour.Sri Lanka faces an economic crisis as it struggles to pay for essential imports of food and fuel after a 70% drop in foreign exchange reserves since January 2020 led to a currency devaluation and efforts to seek help from global lenders.
Sri Lankan Finance Minister Basil Rajapaksa signed the earlier credit line of $1 billion in the Indian capital of New Delhi this month to help pay for critical imports by the Indian Ocean island nation.