R. Hariharan writes that Sri Lanka has sought immediate help from India, as Colombo’s net foreign exchange reserves have fallen to an all-time low of $1.2 billion, which is barely enough for a month’s imports. Photo: Shutterstock
The decision to buy 750 Jeeps from Indian auto maker Mahindra & Mahindra was taken during the cabinet meeting held on Monday.
- PTI Colombo
- Last Update:Jan 04, 2022, 7:24 PM IS
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Sri Lanka has decided to purchase a fleet of 750 jeeps and 500 buses from India under a line of credit received from New Delhi, the island nation’s government announced here on Tuesday. The decision to buy 750 Jeeps from Indian auto maker Mahindra & Mahindra was taken during the cabinet meeting held on Monday.
According to a statement issued by the cabinet, “the police will have to upgrade its fleet of vehicles with the purchase of jeeps from India under the credit line sanctioned for the purpose.” According to the statement, the proposal for award of purchase contract to Mahindra & Mahindra Company was approved by the Minister of Public Safety.
Similarly, a proposal by the Transport Minister was also approved to procure 500 buses with a seating capacity of 32-35 from India in pursuance of the cabinet decision taken in January 2020. In November 2020, the cabinet approved the move to buy Jeep. Under the Indian credit line, it said.
The move comes days after Sri Lanka agreed to sign a new deal with India to lease some oil tanks from a strategic World War II-era oil tank farm in the eastern port district of Trincomalee for 50 years. has come after. In 2020, India extended a line of credit of USD 100 million to Sri Lanka to help the island nation finance various projects.
In October 2021, Sri Lanka again sought a USD 500 million credit line from India to pay for the purchase of crude oil amid a severe foreign exchange crisis in the country. The island nation’s finance minister, Basil Rajapaksa, visited Delhi last month, which officials described as a means to expedite the outstanding issues on economic cooperation with India.
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