Sri Lanka is negotiating a further $500 million in fuel import credit lines with India amid the country’s ongoing economic crisis. The media reported that Sri Lanka’s High Commissioner to India, Milinda Moragoda, discussed the issue at a meeting with Indian Finance Minister Nirmala Sitharaman last week.

The line of credit is an extension of an earlier $500 million, the report said. Sri Lanka is facing its worst economic crisis since independence in 1948. The recession was due to a shortage of foreign currency due to the suppression of tourism during the COVID-19 pandemic.

It has left the country unable to buy enough fuel, and people are facing severe shortages of food and necessities, fuel and natural gas. According to Sri Lanka Daily, India has provided another $1 billion line of credit for basic imports. However, the report added that $200 million of that was spent on fuel imports.

The island nation has so far exhausted nearly $700 million in Indian diesel and petrol credits. On Friday, Sri Lankan Prime Minister Ranil Wickremesinghe praised India’s support amid the ongoing economic crisis and said he wanted to strengthen ties between the two countries further.

Wickremesinghe’s praise for India comes on the same day its neighbour donated 25 tonnes of medicines and other medical supplies worth nearly $2.6 billion. This batch of medical supplies was donated at the request of different organizations and hospitals across the country.

The Indian High Commission stated that these humanitarian supplies are a continuation of the Indian government’s continuous support for the Sri Lankan people in financial assistance, foreign exchange support, and material supply.