Developmental relations have been built for a long time; Indias prompt assistance during the 1988 coup attempt, led to development of trust and long-term friendly bilateral relations. India was the first to assist Maldives during the 2004 Tsunami as well as the water crisis in Malé in December 2014. These three incidents (in 1988, 2004 and 2014) have established the advantages of Indias proximity and capacity to come to Maldives rescue in distress.
With the signing of the LOC agreement for $500 million, Exim Bank, to date, has extended 10 lines of credit to the Sri Lankan government on behalf of the Indian government, taking the total value of LOCs extended to $2.18 billion, a release said.