SRI LANKA was handed temporary relief from energy shortages and rolling blackouts 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 $915m 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 $500m 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 per cent 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 $35bn sovereign debt.
Sri Lanka has sought more loans from Beijing to help repay its existing Chinese debt, which accounts for about 10 per cent 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.
(AFP)
Dharavi slum in Mumbai
During the hearing, Clifford denied all the charges except for the rape charge, which was added to the indictment at the session. (Photo: Hertfordshire Police /Handout via REUTERS)
Man pleads not guilty to murder of BBC presenter's family
A 26-year-old man has pleaded not guilty to charges of murdering the wife and two daughters of BBC sports commentator John Hunt in a crossbow and knife attack.
Kyle Clifford, who also faces charges of rape, appeared via video link at Cambridge Crown Court on Thursday.
Clifford, arrested in July after a manhunt, is charged with three counts of murder, one count each of rape and false imprisonment, and two counts of possessing offensive weapons – a 10-inch knife and a crossbow.
During the hearing, Clifford denied all the charges except for the rape charge, which was added to the indictment at the session.
He is expected to enter a plea for that charge at a later date.
The victims were Carol Hunt, 61, wife of horseracing commentator John Hunt, and their daughters Louise, 25, and Hannah, 28.
An earlier hearing revealed that Louise had been found tied up and that both she and her sister had been shot with a crossbow, while their mother had been stabbed with a knife.
The fatal attack occurred at the family’s home in Bushey, a commuter town near Watford, northwest of London.
(With inputs from AFP)