Sri Lanka Seeks Loan from India

Current Context: The Government of Sri Lanka has sought a credit line from India in order to pay its purchases of crude oil.

• In this regard, Sri Lanka has sought a USD 500 million loan from India.
• Currently, Sri Lanka is facing a severe foreign exchange crisis because the pandemic has badly hit the economy of the island nation.
• The credit line of USD 500 million is a part of the India-Sri Lanka economic partnership.
• The island nation will use the loan amount to procure petrol and diesel requirements.
• Static Part: 
• Capital of Sri Lanka: Sri Jayawardenepura Kotte
• Currency of Sri Lanka: Sri Lankan rupee
• Prime Minister of Sri Lanka: Mahinda Rajapaksa
• President of Sri Lanka: Gotabaya Rajapaksa.

Question: 

Q.1 Which country sought USD 500 million loans from India to purchase their crude oil requirements?
a. Indonesia
b. Sri Lanka
c. Bhutan
d. Bangladesh