Indo-Sri Lanka Credit Agreement dated January 29, 2001, for US$ 100 million

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....bursed over a period of three years. After utilisation of the first tranche of US $ 45 million, a further tranche of US $ 30 million will be made available during the second year on the same terms and conditions and will be incorporated in a separate agreement. Similarly, third tranche of US $ 25 million would be made available during the third year on the same terms and conditions by way of another separate agreement. The credit of US $ 45 million disbursed in the first year, will be available to the Government of the Republic of Sri Lanka for importing from India capital goods of Indian manufacture including original spare parts and accessories purchased together with the capital goods and included in the original contract as also consult....

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....of the letter of credit. Accordingly, letters of credit should specify that 10 per cent f.o.b. value shall be met out of the remittances from Sri Lanka while the balance 90 per cent shall be financed from the credit. The value of the contract should be expressed in U.S. Dollars. c. All disbursements under the credit shall be made under letters of credit opened by banks in Sri Lanka. All letters of credit will be advised by banks in Sri Lanka to the State Bank of India, New Delhi, for onward transmission to the exporter/s either direct or through another bank in India, if any, nominated by the exporters. Normal commercial practices followed in respect of advising payments under letters of credit will be adopted to ensure that the remaining....

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.... financed under the first tranche of credit should be signed and relative letters of credit established on or before December 31, 2001, and the full amount be drawn under the credit on or before December 31, 2002. In regard to consultancy services, consumer durables and food items, contracts, to be financed under the credit agreement, should be signed, relative letters of credit established and the full amount drawn on or before December 31, 2001.If the full amount is not drawn by the aforesaid dates, the balance will be cancelled and the final instalment of the repayment to be made by the Government of Sri Lanka shall be reduced accordingly, except as may otherwise be agreed to by the Government of India. 4. Shipments under the credit ag....