INSUBCONTINENT EXCLUSIVE:
India is willing to commit up to another $2 billion in financial assistance to Sri Lanka while also supporting the island nation with food
some $2 billion in dues, such as those owed to the South Asia-focussed Asian Clearing Union
The source said the response had been positive from India.All the sources had direct knowledge of the matter or had been briefed on it, but
finance ministries, did not immediately respond to requests for comment.India has so far committed $1.9 billion to Sri Lanka in loans,
credit lines and currency swaps
Sri Lanka has also sought another $500 million credit line for fuel.China has extended a $1.3 billion syndicated loan and a $1.5
billion-yuan denominated swap, while negotiations are ongoing for more loans and credit lines.One of the sources said New Delhi was keen for
its southern neighbour to cut its reliance on China
condition for offering help, it had been able to make the Sri Lankans realise that it was in a better position to support them than
China.Sri Lanka is due to formally start loan negotiations with the International Monetary Fund on Monday, and one of the Indian sources
Street protests have gone on for more than a month against shortages of fuel, food, power and medicine.New Delhi has already helped Sri
Lanka with $2.5 billion for rapid post Covid-19 economic recovery.Last week, Ministry of External Affairs spokesperson Arindam Bagchi said:
There has been an evolving economic situation as well as other developments
To help mitigate the economic situation there, we have extended assistance -- $2.5 billion, in the past two to three months, including
In addition, 40,000 tonnes of rice have been supplied under the recently extended $1 billion credit line.The relationship between India and
to continue working with Sri Lanka for rapid post Covid economic recovery in line with our neighbourhood policy and we have already conveyed
to them at various occasions
challenge of fast eroding foreign exchange reserves and surging inflation leading to the brink of bankruptcy
Sri Lanka is currently facing solvency issues with unsustainable debt levels.With unprecedented shortage of foreign exchange, the basic
needs of the people of Sri Lanka cannot be met
There are huge queues outside petrol pumps as there is no foreign exchange reserve to import petrol, pharmacies have run out of medicines
and newspaper houses have run out of newsprint.Since January 2022, the inflation rate has crossed 18 per cent in Sri Lanka.Source:
This article first appeared/also appeared in https://adaderana.lk
