Tuesday, September 27, 2022

How India’s helping Sri Lanka to recover from economic crisis?

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In the midst of a serious economic crisis in Sri Lanka, India is offering a financial package to Colombo in order to help it meet some of its more pressing demands and stabilize its own economy.

External Affairs Minister S Jaishankar promised Sri Lankan President Gotabaya Rajapaksa and Prime Minister Mahinda Rajapaksa on Monday that India would continue to assist them in dealing with the economic crisis.

India has offered a $1 billion line of credit to enable Sri Lanka to obtain critical commodities like food and medicines. It has provided a $500 million credit line for the purchase of crude oil. As well as aided Sri Lanka in dealing with the balance of payment issue by extending a $400 million currency swap along with deferring a $515 million Asian Clearing Union (ACU) settlement.

On Saturday, a delivery of 40,000 metric tonnes of diesel from India arrived in Sri Lanka.

India has further pledged to spend more in Sri Lanka, whether on ports, energy, power, tourism, or information technology. Currently, India plays an important role in Sri Lanka’s economic recovery.

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