India’s initiative to free Sri Lanka from debt


stgrtrt
Spread the love

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

A statement issued by the Sri Lankan High Commission after the meeting expressed gratitude to India and said that India’s assistance would go a long way in resolving 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 Tuesday 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. Of this, China alone contributes 6 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 on whether 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 the development of the island nation in the medium term.

See also  Things To Consider When Hiring A Criminal Defence Lawyer

Geopolitically, Sri Lanka’s position is important to India. India’s main goal is to keep this country right next to China free from Chinese influence. Last February, India lent them 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 other assistance between the two countries.

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


Spread the love

Mujahid ali