India today said its economic assistance to Sri Lanka, facing its worst economic crisis since independence in 1948, stands at more than USD three billion this year, so far, and is instrumental in addressing diverse needs of the government and people of Sri Lanka.

The USD one billion credit Facility for purchase of food, medicines and other essential commodities is already operational and around 16,000 tonnes of rice supplied under it are being distributed, the Indian High Commission in Colombo said in a statement.

Till date, additional consignments of rice and other food supplies, medicines and industrial raw materials, among others, are envisaged under the credit line, reports our New Delhi correspondent, citing the statement.

A separate Line of Credit of USD 500 million for the purchase of petroleum products, such as diesel, petrol and aviation fuel, has paved the way for the delivery of nine consignments of different types of fuel.

Petrol and diesel supplies have been distributed across the 1300 fuel outlets in all the 25 districts of Sri Lanka. Close to 400,000 tonnes of fuel have been delivered under this credit line till date and more consignments will reach the island nation soon.

Deferment of dues of about USD one billion till March this year, to be paid by the Central Bank of Sri Lanka to the Reserve Bank of India, under the Asian Clearing Union, will assist in strengthening the forex reserves of Sri Lanka.

This has been complemented by the currency swap of USD 400 million, which was further extended by three months on 18 April this year.