More details revealed on Sri Lanka’s request for assistance from China and Australia

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Sri Lanka has reportedly requested financial assistance from the Australian government.

Trade Minister Bandula Gunawardana has requested a US$200 million line of credit from Australia.

The Minister requested financial assistance from Australia to import lentils, powdered milk and food products.

Australia is the second country from which Sri Lanka has requested financial assistance in the space of a week to deal with its worsening economic crisis.

Earlier this week (21), it was reported that the Sri Lankan government had requested a US$1 billion loan and a US$1.5 billion line of credit from China.

The Chinese Embassy in Sri Lanka said the additional $2.5 billion financial aid request comes on top of the $1.5 billion currency swap in 2021.

The Ministry of Finance today released a clarification on the $2.5 billion loan that has been requested from China.

The finance ministry secretary said China’s $1.5 billion line of credit was to be used to import essential raw materials, medicines and foodstuffs.

The secretary further said that the remaining $1 billion loan should be allocated to increase liquidity in the foreign exchange market. (NewsWire)

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