$51m. Indian credit for Sri Lanka

COLOMBO July 3. India today extended to Sri Lanka credit worth $51 million at concessionary interest rates, a part of which is in support of the island's Economic Stabilisation Programme, negotiated with the International Monetary Fund.

The Indian High Commissioner, Gopalkrishna Gandhi and the Sri Lankan Finance Secretary, Charitha Ratwatte signed two credit agreements here this morning.

The first provides $31 million for the purchase of wheat grain from India, in response to a request made by the Prime Minister, Ranil Wickremesinghe, during his visit to India last December.

The proceeds of this credit will be utilised to import 3,00,000 tonnes of wheat grain over 20 months, and will cover 100 per cent of the FOB value of wheat grain imported from India.

The repayment of this credit is spread over 15 years, with a grace period of five years.

The second agreement, provides $20 million in support of Sri Lanka's Economic Stabilisation Programme, negotiated with the IMF. The repayment period for this credit is nine years, commencing from 2005.

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