Sri Lanka signs deal to lease oil tanks to Indian Oil amid financial crisis
COLOMBO (Reuters) – Sri Lanka on Thursday signed a deal with the local unit of Indian Oil Corp, Lanka IOC, to lease 75 oil tanks, as the island moved closer to securing a $500 million fuel credit line from India.
The signing of the deal comes ahead of Chinese Foreign Minister Wang Yi’s visit to Colombo this weekend, with China also vying for clout in Sri Lanka.
Sri Lanka is facing its worst financial crises in decades with its foreign exchange reserves dwindling and nearly $4.5 billion worth of debt repayments due in 2022, prompting it to look at innovative ways to bring in foreign exchange.
