Indian Finance minister Nirmala Sitharaman and Sri Lankan high commissioner Milinda Moragoda on Friday discussed the possibility of increasing the assistance provided by New Delhi to allow the island nation to cope with a severe economic crisis.
Moragoda informed Sitharaman during a meeting that Sri Lanka will require bridging finance until an economic adjustment programme with the International Monetary Fund (IMF) can be negotiated and finalised.
“In this context, the minister and the high commissioner explored the possibility of increasing and restructuring the assistance provided by India in the form of credits for essential commodities and fuel as well as balance of payment support,” said a statement from the Sri Lankan high commission.
The two sides also agreed that the established official-level mechanism for conducting the economic dialogue between India and Sri Lanka should continue.India has provided economic assistance worth almost $3 billion to Sri Lanka since the beginning of the year, including lines of credit for purchasing food and fuel, a currency swap and deferring the repayment of loans.
India has provided economic assistance worth almost $3 billion to Sri Lanka since the beginning of the year, including lines of credit for purchasing food and fuel, a currency swap and deferring the repayment of loans.
During the meeting, Sitharaman and Moragoda assessed the ongoing economic cooperation and discussed the way forward. This was a follow-up to their meeting in mid-April. (Hindustan Times)