Home Economy India Providing Financial Package To Help Sri Lanka

India Providing Financial Package To Help Sri Lanka

India Providing Financial Package To Help Sri Lanka
Photo: Collected

India has come forward to rescue Sri Lanka from the financial crisis. According to various government sources, India will provide another 2 billion dollars in financial assistance to the island nation. Sri Lankan High Commissioner to Indian Milinda Moragoda met Indian Finance Minister Nirmala Sitharaman. The two had a long discussion about the economic crisis. So, India Providing Financial Package To Help Sri Lanka.

A statement issued by the Sri Lankan High Commission after the meeting expressed gratitude to India and said that India’s assistance would help them resolve the crisis. India is the first country to extend a helping hand in this crisis.

Sri Lanka became independent in 1947. They have never faced such a difficult economic situation since. Debt-ridden Sri Lanka said on April 12, 2022; it would be forced to declare itself in default if the International Monetary Fund (IMF) failed to repay its debt. Sri Lanka has already appealed to various countries, including India and China, in the hope of overcoming the crisis.

After a meeting with the Indian finance minister, various sources in the finance ministry told the media that India had decided to lend another two billion dollars. International Monetary Fund meeting in Washington next week. Ali Sabri, the new Finance Minister of Sri Lanka, and other representatives will be meeting with representatives of the Indian Ministry of Finance.

Sri Lanka’s total external debt is about 51 billion dollars. Of this, China alone contributes 8 billion. The Sri Lankan government has been forced to lease the port of Hambantota to China for 99 years due to debt. China has not yet announced a decision to help the country get out of the debt trap. The Indian government has already come forward. Moragoda also discussed with Nirmala Sitharaman how India could be instrumental in developing the island nation in the medium term.

Geopolitically, Sri Lanka’s position is essential to India. India’s main goal is to keep this country right next to China, free from Chinese influence. In February, India lent 500 million to buy fuel and 1 billion to buy food, medicine, and other essentials. In addition, India has provided an additional 1 billion in cash exchange and further assistance between the two countries.

In all, India has already lent them about 2.5 billion. According to government sources, it will give another 2 billion in assistance. An Indian ship carrying 11,000 tonnes of food arrived in Colombo on April 12. Another ship carrying rice, wheat, and sugar is scheduled to leave on April 14.

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