Colombo/ New Delhi | New Jagran desk: Sri Lanka is undoubtedly going through its worst economic crisis with prices of basic commodities such as fuel, cooking gas, milk, etc. reaching a record level. The entire cabinet of the Sri Lankan government except Prime Minister Mahinda Rajapaksa has also tendered their resignations, forcing President Gotabaya Rajapaksa to call on all political parties in the island nation to take up cabinet posts.

With inflation rates exceeding 18% and the island nation’s foreign exchange reserves continuing to dwindle, India has stepped in to help Sri Lanka recover from its worst economic crisis. New Delhi has decided to help Colombo with a billion dollar line of credit to help procure food, medicine and other essentials.

“India has always stood with the people of Sri Lanka and we will continue to give all possible support at this stage. I think we are aware of the economic difficulties the country is facing,” the spokesman said. Ministry of External Affairs (MEA), Arindam Bagchi. noted.

In February this year, India extended a new $500 million line of credit to Sri Lanka to finance its fuel purchases. The Line of Credit Agreement (LOC) has been signed between the Export Import Bank (EXIM) of India and the Government of Sri Lanka (GOSL).

India has also agreed to develop three wind farms in Jaffna in Sri Lanka for a budget of 12 billion dollars. Similarly, the Indian Oil Corporation (IOC) also sent 40,000 tons of diesel to help Sri Lanka deal with the energy crisis.

“These facilities, negotiated and concluded within weeks, have proven to be the lifeline for the people of Sri Lanka at a time when import financing from Sri Lanka is difficult due to the balance of payments situation” , Gopal Baglay, the High Commissioner to Sri Lanka told ANI news agency.

“India’s prompt assistance to the people of Sri Lanka at this hour has been appreciated by all sections of Sri Lankan society,” the Indian High Commissioner to Sri Lanka added.

Posted by:
Aalok Sensharma