The future of the one billion dollar emergency loan from India seems uncertain, as India has called for a road map from Sri Lanka on how it is going to overcome its economic crisis in the long term.
Reports state India has also called on Sri Lanka to reveal the steps taken to clear the decks for a long list of its economic cum strategic demands for implementation in the North and the East of Sri Lanka.
According to the Sunday Times, the Indian Government is awaiting the green light from Sri Lanka on both fronts.
The Indian Government was eager to start a renewable energy (solar power) project in and around Sampur near Trincomalee as a joint venture with Japan, but the plan was abandoned as Sri Lanka announced a move away from coal plants as part of its futuristic energy policy.
The reopening of the Palay airport for commercial operations and several cultural projects in the Jaffna peninsula are also among items on the list already made public, while the Indian Government also wants to enter into the renewable energy field in the Delft islet.
It is learned, that the one billion US dollar loan from India agreed to earlier in principle by the Indian Finance Ministry remains suspended for now, until guarantees are given from the Sri Lankan side.
Finance Minister Basil Rajapaksa twice cancelled a visit to India after securing a USD 500 million loan in December last year.
His visit to clinch a further one billion dollar loan for emergency supplies of food, fuel, and medicines to overcome the ongoing economic crisis in Sri Lanka is yet to be rescheduled.
The December loan taken by Sri Lanka is due to be repaid this week. (NewsWire)