Colombo: – India has announced loan assistance of $500 million to Sri Lanka. India has said that this assistance is being provided to Sri Lanka, which is going through a major economic crisis, for oil imports. At the same time, reports were being received that Sri Lanka has escaped being declared bankrupt by repaying an international debt to the tune of $500 million. In these difficult times, the timely assistance provided by India becomes vital for Sri Lanka.
A few days ago, Indian and Sri Lankan Foreign Ministers held telephonic discussions. The Sri Lankan Foreign Minister appealed for financial assistance from India. Indian Foreign Minister responded to the appeal and after that, India announced loan assistance of $500 million to Sri Lanka. The Sri Lankan economy is going through a severe crisis. The Sri Lankan foreign reserves do not have enough funds to repay the international bonds and loans from other countries.
Reports had been published that Sri Lanka did not have funds enough, even for one month of imports. Against this background, the Sri Lankan Foreign Minister had said during the discussions with the Indian Foreign Minister that Indian investments in Sri Lanka will be welcome. India has responded to the appeal and it is being revealed that the cooperation between the two countries on the political and economic level is becoming stronger.
A few days ago, the Chinese Foreign Minister visited Sri Lanka and assured financial assistance. But Sri Lanka demanded a restructuring of old Chinese debts, indicating that Sri Lanka was unwilling to get entrapped in the Chinese debt noose again. Agitated with this Sri Lankan approach, the Chinese Foreign Minister had threatened that no third country should intervene in the China-Sri Lanka bilateral relations.
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