New Delhi, 09th July 2023: The Indian government has maintained its commitment to play “a constructive role” in assisting Sri Lanka’s recovery from the greatest economic crisis in its history.
On Friday, India’s Deputy High Commissioner Vinod K Jacob spoke at the Construction, Power and Energy Expo 2023 launch ceremony in Colombo, saying that recent advancements in India-Sri Lanka relations have enhanced the two countries’ friendship and collaboration.
This comes after India became the first country to give over its letter of support for funding and debt restructuring of Sri Lanka to the International Monetary Fund (IMF) in January of this year.
In May, 17 nations with loans to Sri Lanka convened an official creditor committee’ co-chaired by India, Japan, and France to discuss Sri Lanka’s request for debt relief.
The Paris Club is a gathering of officials from crucial creditor countries tasked with finding coordinated and long-term solutions to debtor countries’ payment problems.
According to Jacob, India’s financial and humanitarian assistance to Sri Lanka is significantly greater than the IMF’s expected Extended Fund Facility.
Due to a severe lack of foreign exchange reserves, Sri Lanka had a devastating financial crisis in 2022, the worst since its independence from Britain in 1948. As the country suffered, India gave multi-pronged assistance worth approximately USD 4 billion last year, including several loan lines and currency support, in accordance with India’s ‘Neighbourhood First’ policy.
