New Delhi: In line with its ‘neighbourhood first’ policy, the centre emphasised that India stands ready to continue working with Sri Lanka for rapid post-COVID economic recovery.
Replying to a question regarding current developments in Sri Lanka during the MEA briefing, spokesperson Arindam Bagchi said, Sri Lanka is a neighbour and a close friend of India and India is closely watching the developments in the island nation.
“There have been evolving economic situations as well as other developments in Sri Lanka. In order to help mitigate the economic situation, we have extended assistance worth $2.5 billion in the past two to three months which includes credit facilities for fuel and food,” said Bagchi.
Meanwhile, India has delivered over 270,000 MT of diesel and petrol to Sri Lanka since mid of March and 40,000 tonnes of rice have been supplied to the island nation under the recently extended one billion USD credit facility.
Sri Lanka is battling a severe economic crisis with food and fuel scarcity affecting a large number of the people in the island nation. The economy has been in a free-fall since the onset of the COVID-19 pandemic.
Here Are The Highlights Of The Lankan Crisis
- Sri Lanka’s opposition demanded President Rajapaksa’s resignation over the country’s worsening shortages of food, fuel, and medicines.
- 26 Sri Lankan Cabinet Ministers resigned en masse from their positions amid rising public anger.
- Protests against the government in different parts of the country. A 36-hour nationwide curfew is already in force after protests outside the residence of President Gotabaya Rajapaksa.
- Sri Lanka’s economy has been in a free fall since the COVID-19 pandemic due to the crash of the tourism sector.
- Sri Lanka’s currency has been also devalued by almost SLR 90 against the US dollar since March 8.
- Buses in Colombo sit idle while some hospitals have suspended routine surgeries. Exams were postponed this month because schools ran out of paper.
- Island nations facing a foreign exchange shortage which has led to a fuel, power and gas shortage and have sought the assistance of friendly countries for economic assistance.
- India delivered 40,000 MT of diesel to Sri Lanka to help ease the power crisis in the island country.
- India provided more than $500 million in foreign currency swaps to strengthen Sri Lanka’s foreign reserves, taking the total up to $900 million.
- India also extended the repayment time frame for the $500 million debt of Sri Lanka under the Asian Clearance Arbitration.
- More recently on March 17, Sri Lanka signed a $1 billion credit line deal with India for the procurement of food, medicines and other essential items during Sri Lankan Finance Minister Basil Rajapaksha’s two-day visit to India.
Click here for Latest News updates and viral videos on our AI-powered smart news
For viral videos and Latest trends subscribe to NewsMobile YouTube Channel and Follow us on Instagram
(With agency inputs)