The government has decided to import iron ore from India with a $ 1 billion loan given to India to buy essential items including food, according to the Sunday Times.

Of that billion, $ 250 million has already been spent, and the remaining $ 750 million will be used to import iron and steel.

According to the report, economists are questioning the import of iron and steel when there is a huge shortage of essential food items, gas, fuel and other commodities in Sri Lanka and there are powerful government-linked businessmen behind the import of iron and steel from these loans.

Negotiations are already underway with Indian banks to facilitate the import of these iron and steel.