According to the latest reports, Pakistan has made the decision to offer a loan of $200 million to Sri Lanka for the purchase of rice and cement.
The report further stated that the recent visit of the Sri Lankan Trade Minister to Islamabad lead up to this decision.
The terms and duration of the loan, however, were being finalised by officials from both countries, it added.
Sri Lanka plans to use the funds that it will receive from Pakistan for the import of rice and cement.
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According to the Colombo-based Daily Mirror Newspaper, Sri Lanka’s Secretary to the Treasury Sajith Attygalle affirmed that Islamabad and Colombo have reached an agreement on the $200 million credit line, though the details of the credit have yet to be worked out.
The amount that Pakistan issues will be used to import cement, basmati rice and medicines manufactured in Pakistan, the publication stated.
This comes as good news to Sri Lanka as it has been facing a shortage of cement which has led to soaring prices.
Relations between Pakistan and Sri Lanka
Relations between Pakistan and Sri Lanka date back to the two countries’ inception. When Sri Lankan Prime Minister DS Senanayake visited Pakistan in 1948, the two countries laid the groundwork for their friendship.
In South Asia, Pakistan is Sri Lanka’s second-largest trading partner. On June 12, 2005, Sri Lanka became the first country to sign a Free Trade Agreement with Pakistan. 4,000 items can be imported to Pakistan from Sri Lanka.
Recently, Sri Lankan Airlines expressed an interest in expanding its operations to multiple cities in Pakistan, as well as inviting Pakistan International Airlines to operate additional flights to Sri Lanka. GT Jeyaseelan, chief marketing officer of Sri Lankan Airlines, stated that “Sri Lanka and Pakistan are two close, friendly neighbours,” and that he looked forward to expanding cooperation between the two airlines.
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