Advertisement

Updated January 20th, 2022 at 14:57 IST

India pledges a whopping $2.4 billion fund to Sri Lanka to help overcome financial crisis

As Sri Lanka is facing a serious financial crisis, India has stepped up and pledged a whopping USD 2.415 billion to the island nation, ANI reported.

Reported by: Ajeet Kumar
India
Image: ANI | Image:self
Advertisement

India on Thursday assured its neighbouring country, Sri Lanka to help the country overcome financial crisis, ANI reported. According to the news agency, New Delhi has offered an amount of $2.415 billion to the island nation in order to overcome the financial constraints caused by external debt payments.

The statement from the Ministry of External Affairs came following a virtual meeting of EAM S Jaishankar and Sri Lankan Finance Minister Basil Rajapaksa. During the meeting, EAM said that New Delhi has always stood with Colombo, and will continue to defend Sri Lanka in all possible ways for overcoming the economic and other challenges posed by the COVID-19 pandemic.

"To help Sri Lanka overcome its economic challenges, India under the SAARC currency swap arrangement has made an extension of USD 400 million to Sri Lanka and provided a deferral of ACU (Asian Clearing Union) settlement of USD 515.2 million by two months. India's critical support to Sri Lanka is due to the ongoing fuel crisis where the country is unable to purchase due to short of US dollars in the country," the Policy Research Group (PRG) said in its report.

"India has been keeping a close eye on China's activities in Sri Lanka, said the report. In the midst of deteriorating relations with India, Finance Minister Basil Rajapaksa's visit to New Delhi has given the relationship a boost. The Trincomalee oil tanks, the West Container Terminal, and several renewable energy projects were all offered to India," Policy Research Group added.

India offers help despite Chinese 'warning'

Further, the report highlighted the recent visit of Chinese Foreign Minister Wang Yi to Sri Lanka, in which he said that China would not allow any other country to interfere in their close ties with Sri Lanka. Despite the "irrelevant" statement from the Chinese official, the report said that New Delhi has demonstrated its ability to dissect and respond to the crisis.

"China has been Sri Lanka's largest lender for the past decade, playing a contentious role in the island's major development projects. China wants to tighten its grip on Sri Lanka by seizing land when the country defaults on its loans, something no other country has done before," according to Policy Research Group.

With inputs from ANI

Image: ANI

Advertisement

Published January 20th, 2022 at 14:57 IST

Your Voice. Now Direct.

Send us your views, we’ll publish them. This section is moderated.

Advertisement
Advertisement

Trending Quicks

INDI Seals Seat-sharing Deal in Bihar, RJD to Contest on 26 Seats, Cong 9
9 minutes ago
Bengaluru Man Tragically Dies After Friend Pumps Hot Air Into His Rectum For Fun
12 minutes ago
Sunita Kejriwal urged people to send ‘messages of support’ to Delhi CM
14 minutes ago
Congress Press Conference
15 minutes ago
Kamlesh Awasthi
16 minutes ago
Adani Green Adopts Robotics for Solar Module Maintenance
29 minutes ago
Electric Vehicle
31 minutes ago
Lok Sabha Elections 2024 LIVE
31 minutes ago
A poster of Crew
37 minutes ago
"We never celebrated Holi after the incident (the murder), I felt that today is Holi for us,” Alka Rai, wife of formerBJP MLA Krishnanand Rai said.
39 minutes ago
Advertisement
Advertisement
Advertisement
Whatsapp logo