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Publish Date : 29-Feb-2012

Export-Import Bank of India (Exim Bank) has, at the behest of Government of India, extended a Line of Credit (LOC) of USD 382.37 million to the Government of Sri Lanka, for financing (i) Track-laying on the Pallai-Kankesanthurai Railway Line (USD 149.34 million), (ii) Setting up of signaling and telecommunications systems for the Northern Railway Line (USD 86.52 million), and (iii) any other contracts that may be mutually approved by the Governments of India and Sri Lanka (USD 146.51 million). The LOC Agreement to this effect was signed in Colombo, Sri Lanka on Tuesday, January 17, 2012, by Mr. T.C.A. Ranganathan, Chairman and Managing Director on behalf of Exim Bank and Dr. P.B. Jayasundera, Secretary, Ministry of Finance and Planning, on behalf of the Government of Sri Lanka.

This is the fifth LOC to the Government of Sri Lanka. This LOC is for reconstruction of the railway infrastructure in the Northern Province in Sri Lanka. Exim Bank had earlier extended four LOCs to the Government of Sri Lanka of value aggregating USD 683.79 million which are being utilised for financing supplies/equipments from India to Sri Lanka, upgradation of the Southern Railway Line and track laying in the Medawachchiya - Talai Mannar and Omanthai - Pallai sectors of the Northern railway line in Sri Lanka.

Under the LOC, Exim Bank will reimburse 100% of contract value to the Indian exporters, upfront upon the shipment of equipment and goods/ provision of services. Major export items from India to Sri Lanka are petroleum products, transport equipment, cotton yarn fabrics, sugar, pharmaceutical products, machinery & instruments, and primary & semi-finished iron & steel.

With the signing of this LOC Agreement, Exim Bank has now in place 153 Lines of Credit, covering 73 countries in Africa, Asia, Latin America, Europe, Oceania and the CIS, with credit commitments of over USD 8.03 billion, available for financing exports from India. Exim Bank\'s LOCs afford a risk-free, non-recourse export financing option to Indian exporters. Besides promoting India\'s exports, Exim Bank\'s LOCs enable demonstration of Indian expertise and project execution capabilities in emerging markets.

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