Last Update: March 08, 2023, 18:18 IST
Sri Lankan Foreign Minister Ali Sabri said the Indian government took bold decisions to help the country deal with the crisis. (Credits: Twitter/MUM Ali Sabri)
India extended financial assistance of about USD 4 billion to Sri Lanka last year, including loans for the purchase of food and fuel
Sri Lankan Foreign Minister Ali Sabri said India extended more help to Colombo than any other country, especially when the island nation was facing an unprecedented economic crisis.
“Your real friends are tested when bad times come. India stands with us, a friend in need and a friend indeed they say. So we are very grateful to India for what it has done for us.
The Sri Lankan foreign minister also said that the Indian government took bold decisions to help the country deal with the crisis last year and came forward to support the country, reported ANI.
India last year extended financial assistance of about USD 4 billion to Sri Lanka, which included lines of credit for the purchase of food and fuel, when it was grappling with a severe economic crisis.
He said that the Government of India took bold and decisive action by providing about 3.9 billion bilateral line of credit and recognition to Sri Lanka. He further said that the move gave the country a lifeline to fight the battle for another day and perhaps saved the bankrupt country from oblivion.
He said that India’s intervention was more than that of other countries and New Delhi’s effort to save Sri Lanka from drowning in debt was revealed early on.
New Delhi also provided International Monetary Fund (IMF) guarantees to help the country secure a US$2.9 billion bailout package, becoming the first of Sri Lanka’s creditors to back the crisis-hit country’s debt restructuring program .
“This moves Sri Lanka closer to receiving a significant package of USD 2.9 billion from the IMF, making a good faith effort to obtain financing assurances from Sri Lanka’s official creditors and reach a collaborative agreement with private creditors” it depends on. Added.
The statement comes days after External Affairs Minister S Jaishankar held wide-ranging talks with his Sri Lankan counterpart Ali Sabri focused on promoting bilateral trade as well as facilitating Sri Lanka’s economic recovery.
Sri Lanka will be hit by an unprecedented financial crisis in 2022, the worst since its independence from Britain in 1948, fueled by a severe shortage of foreign exchange reserves, sparking political turmoil in the country that has led to the all-powerful Rajapaksa family Was expelled.
The IMF in September last year approved a USD 2.9 billion bailout package to Sri Lanka over 4 years, with Sri Lanka’s ability to restructure its debt with creditors – both bilateral and sovereign bondholders. With the assurance of creditors, the USD 2.9 billion facilities may get IMF board approval in March.
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