Home / News / World /  India's $1 billion credit line to Sri Lanka used for food, medicines, not water cannon: Embassy

Rejecting the reports that the Sri Lankan government imported water cannon vehicles under a credit line extended by the Indian government, the Indian residing in Sri Lanka said, “Such incorrect reports don’t make any constructive contribution to the cooperation and efforts undertaken to address the ongoing challenges."

They further asserted that the credit line of USD 1 billion to Sri Lanka is intended to help the people of the country with the availability of food, medicines and other essential items required by the people in the current situation.

Meanwhile, the Sri Lanka government has once again declared state of emergency in the country. The government said, it was required to tackle the unprecedented economic crisis plaguing the country, even as President Gotabaya Rajapaksa faced flak from the Opposition and foreign envoys for his decision which gives security forces power to crack down on peaceful protests.

In a special Cabinet meeting on Friday, the embattled president declared the state of emergency with effect from Friday midnight. This is the second emergency declared in just over a month.

Sri Lanka is currently in the throes of unprecedented economic turmoil since its independence from Britain in 1948. The crisis is caused in part by a lack of foreign currency, which has meant that the country cannot afford to pay for imports of staple foods and fuel, leading to acute shortages and very high prices.

Thousands of demonstrators have hit the streets across Sri Lanka since April 9, as the government ran out of money for vital imports; prices of essential commodities have skyrocketed and there are acute shortages in fuel, medicines and electricity supply.

Despite mounting pressure, President Gotabaya Rajapaksa and his elder brother and Prime Minister Mahinda Rajapaksa have refused to quit office.

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