India said on Tuesday it had shipped another 40,000 metric tons of diesel to Sri Lanka to help ease a severe fuel shortage in the indebted island nation as it grapples with its worst economic crisis.

India last month extended an additional credit line of $500 million to Sri Lanka to help the neighbouring country import fuel as the country struggled to pay for imports after a recent sharp drop in foreign exchange reserves, causing its currency to depreciate and inflation to rise.

India and Sri Lanka signed an agreement on February 2, 2022, to provide a $500 million credit line to purchase petroleum products. India’s $500 million fuel import credit line has provided a lifeline amid the economic crisis and a shortage of foreign currency. The island nation is currently experiencing its worst economic crisis since independence in 1948.

The public has been suffering for months due to long fuel lines, gas stoves, shortages of essential supplies and prolonged power outages. With assistance from India, nearly 400,000 tonnes of various fuels were delivered in March and April.

To implement India’s “Neighbourhood First” policy, New Delhi has provided more than $3.5 billion in support to the Sri Lankan people this year alone to help them overcome current difficulties.