A line of credit is a credit facility extended by a bank or other financial institution to a government, business or individual customer that enables the customer to draw on the facility when the customer needs funds. Statement I is correct -: India has extended 8 Lines of Credit (LOCs) to Sri Lanka amounting to USD 1850.64 million. Statement II is not correct -: Association of Southeast Asian Nations (ASEAN) is a regional grouping that aims to promote economic and security cooperation among its ten members: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. Statement III is correct -: in sectors including railways, infrastructure, defence, renewable energy, petroleum and fertilizers in the past 10 years. In January 2022, India extended a USD 400 million currency swap to Sri Lanka under the SAARC Framework and deferred successive Asian Clearing Union settlements till July 6, 2022. A Line of Credit of US $500 million was extended to Sri Lanka for importing fuel from India.
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