Tatsat Chronicle Magazine

Sri Lanka Seeks $55 Million Loan from India for Buying Fertiliser

The Sri Lankan government said that the Indian government has agreed to provide the $55 million loan through the Export-Import Bank of India.
June 8, 2022
Sri Lanka

Sri Lanka has sought a $55 million loan from India for procuring urea for the 2022-23 ‘Maha’ harvest season, 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 in the island country.

“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.

Also Read: World Bank to Provide $700 Million for Sri Lanka Amid Crisis

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 percent crop loss due to last year’s ban on chemical fertiliser imports imposed by President Gotabaya Rajapaksa.

The decision led to widespread farmer protests, which was ignored by the government, naming the move to be a policy to turn to agriculture green with organic fertiliser.

The economic crisis has prompted an acute shortage of essential items such as food, medicine, cooking gas and other fuel, toilet paper and even matches, with Sri Lankans for months being forced to wait in lines lasting hours outside stores to buy fuel and cooking gas.