![Sri Lanka gets urgent $500m Indian loan to pay for oil](https://www.portugalcolonial.pt/media/shared/articles/a3/3e/b5/Sri-Lanka-gets-urgent--500m-Indian--266377.jpg)
-
US defends law forcing sale of TikTok app
-
Messi out for defending champ Miami as Leagues Cup begins
-
Australia bans uranium mining at Indigenous site
-
Divers attempt to reach sunken Philippine oil tanker
-
Trump accuses Harris of anti-Semitism in overblown speech
-
Coughlin clings to lead at LPGA Canadian Women's Open
-
Trump offers tech sector policy flips ahead of election
-
Spacecraft to swing by Earth, Moon on path to Jupiter
-
What's the fallout of Mexican drug lords' capture?
-
Video game makers see actors as AI 'data,' says union on strike
-
Chinese qualifier Shang to face Thompson in ATP Atlanta semis
-
'Massive attack' on French rail threatens more chaos
-
'We did it!': France breathes sigh of relief after Olympics ceremony
-
Regional concern grows as Venezuela blocks vote observers
-
Historic river parade, Dion show-stopper ignite Paris Olympics
-
Rainy Paris Olympic parade dampens many spectators' spirits
-
The one of a kind Paris opening ceremony: five memorable moments
-
Justin Timberlake seeks to dismiss DUI case
-
Warner Brothers Discovery sues NBA over Amazon rights deal
-
Kobe Bryant locker, Maradona jersey up for auction in New York
-
Historic river parade launches Paris Olympics
-
New York family of Holocaust victim reclaims Nazi-looted art
-
NASA Mars rover captures rock that could hold fossilized microbes
-
Thousands evacuate season's biggest wildfire in northern California
-
Ethiopia mourns victims of landslide tragedy
-
Lady Gaga adds sparkle to star-studded Olympic show
-
Airbus and Boeing supremacy secure despite turbulence
-
Teams sail down Seine in rain-soaked Olympics opening ceremony
-
West Indies' treble strike rocks England in third Test
-
Olympic opening ceremony under way on River Seine
-
Mott's England future uncertain as ECB chief fails to offer support
-
Trump meets Israeli PM Netanyahu in Florida
-
S.African police say 95 Libyans detained at suspected military camp
-
Blinken set for talks with Chinese counterpart in Laos
-
Norris heads Piastri in McLaren one-two at Belgian GP practice
-
G20 seeks common ground on taxing super-rich
-
European medicines watchdog rejects new Alzheimer's drug
-
Habib, Ebden eye Alcaraz and Djokovic shocks at Olympics tennis
-
Long queues, ticketing problems ahead of Paris opening ceremony
-
Two Sinaloa Cartel leaders face US charges after stunning capture
-
Spain train driver jailed for 2.5 years over deadly 2013 crash
-
Paris poised for Olympic opening ceremony spectacular
-
Judoka fails doping test in first case at Paris Olympics
-
Holder and Da Silva keep England at bay after West Indies collapse
-
Alpine F1 boss Bruno Famin to leave in August
-
Ethiopia declares three days of mourning after landslide tragedy
-
Brazilian dunes dotted with dazzling pools make UNESCO heritage list
-
Rain, cooling slow huge blaze in Canada's Jasper park
-
French Rugby's Jaminet suspended 34 weeks after racist video: Federation
-
Osaka looking to turbo-charge comeback at Paris Olympics
![Sri Lanka gets urgent $500m Indian loan to pay for oil](https://www.portugalcolonial.pt/media/shared/articles/a3/3e/b5/Sri-Lanka-gets-urgent--500m-Indian--266377.jpg)
Sri Lanka gets urgent $500m Indian loan to pay for oil
Sri Lanka was handed temporary relief from energy shortages and rolling blackouts on Wednesday with a $500 million loan from India to finance urgent oil purchases for the cash-strapped nation.
The island's economic woes have left thermal power generators unable to keep the lights on and disrupted transport networks, as traders run desperately low on foreign currency to fund imports.
Frequent breakdowns at a huge coal power plant have compounded unannounced electricity cuts and households are also struggling to source cooking gas and kerosene.
Officials said a formal agreement was being signed on Wednesday after two weeks of talks, in addition to a recent $915 million in foreign exchange support.
An Indian diplomat said talks were underway on another $1 billion credit line to fund urgently needed food and medicine imports from India.
"The $500 million is for Sri Lanka to purchase petroleum products from Indian suppliers," the official said.
Sri Lanka's economy is also seeing a scarcity of rice, automotive parts and cement, with supermarkets forced to ration some staple foods.
The shortages pushed food inflation to a record 25 percent last month.
Tourism is a key foreign exchange earner for Sri Lanka but the sector has collapsed in the wake of the Covid-19 pandemic.
The government has shut overseas diplomatic missions to save money and a broad ban on imports has been in effect for nearly two years to conserve foreign currency.
Three international rating agencies have downgraded the island since late last year on fears it may not be able to service its $35 billion sovereign debt.
Sri Lanka has sought more loans from Beijing to help repay its existing Chinese debt, which accounts for about 10 percent of the country's external borrowings.
Authorities have borrowed heavily from China for infrastructure projects in the past, some of which ended up as costly white elephants.
F.Ferraz--PC