Colombo, Jun 10 (IANS): With Sri Lankan famers waiting for fertiliser to start the Yala season, India has decided to extend a Line of Credit (LOC) of $55 million to Sri Lanka for the procurement of urea.

"In response to an urgent request from the Government of Sri Lanka (GOSL), an LOC agreement was signed between GOSL and the Export-Import Bank of India on Friday at Colombo in the presence of Sri Lanka Prime Minister Ranil Wickremesinghe, Minister of Agriculture Mahinda Amaraweera, and the High Commissioner of India to Sri Lanka Gopal Baglay. Senior officials from the Sri Lankan and Indian side were also present during the signing ceremony," the Indian High Commission in Colombo said in a statement.

"This LOC will help the GOSL secure urea fertiliser for the ongoing paddy sowing Yala season. In view of the critical requirement, GOSL and EXIM Bank have agreed to complete all procurement procedures expeditiously so that urea supplies can reach Sri Lanka in a short span of time.

"During the signing ceremony, Prime Minister Wickremesinghe expressed his gratitude to the Government of India for the timely assistance. The High Commissioner highlighted that the speedy finalisation of the LOC testifies the importance Government of India attaches to the welfare of the people of Sri Lanka," the statement added.

Acting on its 'Neighbourhood First' policy and as an earnest friend and partner of Sri Lanka, India has extended multi-pronged assistance to the people of Sri Lanka in the last few months.

The support from India ranges from economic assistance of close to $3.5 billion to helping secure Sri Lanka's food, health and energy security by supplying essential items like food, medicines, fuel, kerosene etc.