India to provide Sri Lanka US$2 billion more

With Sri Lanka having announced a temporary suspension of its debt payment, India is reportedly willing to step in and provide financial assistance of another two billion dollars to the nation.

Sri Lanka's High Commissioner to India Milinda Moragoda met Indian Finance Minister Nirmala Sitharaman in New Delhi yesterday (April 13) to review the present status of the two nations' economic cooperation with each other as Sri Lanka enters negotiations with the IMF for an economic adjustment programme, reports our New Delhi correspondent.

Moragoda thanked Sitharaman for the assistance India is extending to Sri Lanka in the form of credits for essential commodities and fuel and also for balance of payment support at these challenging times, the Sri Lankan High Commission said in a statement.

"The Minister and the High Commissioner observed that this assistance could form part of the bridging finance required by Sri Lanka until the economic adjustment programme with the IMF would be negotiated," it said.

India is the first country to support Sri Lanka to secure bridging finance until the programme takes place.

Earlier, Sri Lanka had announced suspension of debt repayment.

A Reuters report, quoting unnamed Indian government sources, said India is willing to offer more swap lines and loans.


Source: Foreign Media reports