Amid economic crisis in Sri Lanka, rations from India reach Colombo
Colombo, April 10: India has again stepped forward to help Sri Lanka amid the worst economic crisis, with vegetables and daily ration items sent by New Delhi reaching Colombo on Sunday.
As New Delhi is providing financial assistance to the island nation, India has already supplied over 270,000 MT of fuel to Sri Lanka till now and has earlier announced another USD 1 billion as a credit to help the country shore up its sinking economy. The USD 1 billion Line of Credit to Colombo will help in keeping Sri Lanka's food prices and fuel costs under check.
Sri Lankan President Gotabaya Rajapaksa met with Indian Prime Minister Narendra Modi last month and updated him on "initiatives being taken by both countries to increase bilateral economic cooperation, and conveyed his thanks for the support extended by India for the Sri Lankan economy."
PM Modi assured Sri Lankan Finance Minister Basil Rajapaksa, who has visited India twice in recent months, that India will always stand by the island nation, which plays a key role in New Delhi's "neighbour first" policy.
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India has provided more than USD 2.5 billion in aid to Sri Lanka since January of this year. New Delhi granted Colombo a USD 500 million short-term credit in February for the purchase of petroleum products through the Ministry of Energy and the Ceylon Petroleum Corporation on behalf of Sri Lanka.
In November 2021, India provided Sri Lanka with 100 tonnes of nano nitrogen liquid fertilisers, after that the country's government banned chemical fertiliser imports.
In addition, the Reserve Bank of India has extended a USD 400 million currency swap as well as several hundred million dollars in deferred payments owed by the Central Bank of Sri Lanka under the Asian Clearance Union.
Sri Lanka is in the midst of a severe economic crisis, with food and fuel shortages affecting a substantial part of the population. Since the outbreak of the Covid-19 pandemic, the economy has been in free fall, resulting in a tourism crisis.
Sri Lanka is also experiencing a foreign exchange shortage, which has hampered the country's ability to purchase food and fuel, resulting in power outages. Sri Lanka was forced to seek aid from friendly countries due to a shortage of essential goods.
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-PTC News
