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India has extended support worth $3.5 b to Sri Lanka so far this year: MEA

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Economy

New Delhi fully supportive of its neighbour’s democracy, stability, economic recovery

India has extended support worth over $3.5 billion to the people of Sri Lanka so far this year , said the Ministry of External Affairs.

“In addition, the people of India have provided assistance for mitigating the shortages of essential items such as food, medicine,” said MEA Spokesperson Arindam Bagchi in an official statement in response to queries received from the media on the Sri Lankan situation.

Sri Lankan Prime Minister Mahinda Rajapaksa resigned on Monday following violent protests against his government. The island nation is going through its worst economic crisis, and its people are facing an acute shortage of food, fuel and power.

“As a close neighbour of Sri Lanka, with historical ties, India is fully supportive of its democracy, stability and economic recovery….India will always be guided by the best interests of the people of Sri Lanka expressed through democratic processes,” said Bagchi.

The help extended by the Indian government to Sri Lanka is through a variety of modes such as currency swaps, credit lines for essentials like food, fuel and medicines, and loan deferments.

The Sri Lankan economy had already started weakening before the Covid breakout due to lack of proper economic management by successive governments. The pandemic and the subsequent loss in earnings through tourism and foreign remittances provided a further blow to the country’s finances. This, coupled with certain erratic decisions of the Rajapaksa government,destabilised the economy and it tumbled into a crisis.

Published on May 10, 2022

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