By Susitha Fernando

Colombo, Mar 25 (IANS): Sri Lanka has used the very first tranche of the IMF loan of $330 to repay part of Indian credit line.

State Minister for Finance Ranjith Siyambalapitiya told media that $120 million was used to settle the loan taken from India.

"Over the recent past India gave credit lines to import much-needed essentials, including medicine and fuel, and we were to settle part of it on Thursday which we did it on that day itself," the State Minister said.

"It is important that we follow the debt repayment," he added.

Following the economic crisis and Sri Lanka defaulted on its debt

in April last year, India provided financial support of more than $4 billion, including credit lines.

India was also one of the first countries that helped Sri Lanka to get the IMF bailout by agreeing to restructure its debt with the troubled southern neighbour.

Following China, Sri Lanka's biggest bilateral creditor, agreeing to restructure its loans, the IMF agreed to award the conditional loan which would be given within a period of 48 months.

Sri Lanka's financial crisis with shortages of essential items such as food, fuel and medicine with long queues to purchase them, people took to street in March last year.

Street fights toppled Sri Lanka's government forcing President Gotabaya Rajapaksa to flee the country, passing his presidency to Ranil Wickremesinghe.