More financial cooperation from India, on the way
Sri Lanka has been grappling with a severe debt and foreign exchange crisis, thanks to the Chinese trap. Problem has been compounded by a low tourist arrival due to Wuhan Virus spread. The rapidly depleting foreign exchange reserves could result in a default on external debt payment.
Following a meeting between Indian envoy Gopal Baglay and Sri Lanka’s Central Bank governor Ajith Nivard Cabraal in Colombo on Thursday, Payment of INR 3864 Crores ($515.2 million) to the Asian Clearing Union (ACU) by two months to assist Sri Lanka.
In addition to the extension of INR 36750 Crore ( US$ 4,900 million ) support, India and Sri Lanka are working out other pillars of financial cooperation agreed upon during Finance Minister Basil Rajapaksa’s visit to New Delhi last month, an informed source said.
During discussions, there were four pillars of financial support agreed. The currency swap arrangement, the food and health security package, energy security package and facilitation of investments are the four points.
India, on Thursday, announced the extension of INR 67.5 Crores (US$ 900 million) foreign exchange support including the INR 30 Crores (US$ 400 million) SAARC currency swap facility.
According to informed sources, other pillars of support are in progress at the moment.
External Affairs Minister Dr. S Jaishankar had tweeted that India would support Sri Lanka during these difficult times after the phone call with his counterpart Prof. G.L Peiris on January 6, 2022.
Both countries have historical ties going back to thousands of years and therefore India will not permit any kind of external threat financial or physical onto Sri Lanka by any power whosoever or whatsoever.
