India dismiss reports claiming no further financial aid to Sri Lanka: All you need to know

By Team Newsable | First Published Sep 20, 2022, 4:18 PM IST

It said India has extended bilateral assistance amounting close to $4 billion this year to Sri Lanka. Besides, India has advocated to other bilateral and multilateral partners supporting Sri Lanka expeditiously in its current economic difficulties.

The Indian embassy in Sri Lanka on Tuesday said it will continue to extend support to crisis-hit island nation "by promoting long-term investments" in key economic sectors in Sri Lanka for its early economic recovery and growth.

The Indian embassy issued a statement in this regard in the wake of reports that it will not provide further financial support to the island nation that is in the throes of a severe economic crisis (said to be one of the worst in decades).

Tap to resize

Latest Videos

Tap to resize

Also read: A Google CEO visited Indian Embassy for the first time; here's why

Earlier this year, the crisis triggered widespread protests across the island nation, forcing Gotabaya Rajapaksa to resign as President and Ranil Wickremesinghe to take over as the day-long unrest brought the country to a standstill.

In a statement, the High Commission of India in Sri Lanka said, "We continue to be supportive of Sri Lanka in all possible ways, in particular by promoting long-term investments from India in key economic sectors in Sri Lanka for its early economic recovery and growth."

Also read: 'Sleep, Dearie, Sleep': Queen Elizabeth's piper, who woke her up every morning, concludes her funeral

The embassy further said India had ongoing development projects worth about $3.5 billion in Sri Lanka and the country's citizens will continue to avail of scholarships for higher education and skills training in premier Indian institutions.

"These aspects of our close and long-standing cooperation with Sri Lanka also contribute to the efforts for addressing Sri Lanka’s current economic difficulties," it added.

Also read: From Balmoral Castle to Edinburgh, Princess Anne becomes part of Queen Elizabeth's entire final journey

Since the beginning of the crisis that took place earlier this year, India has extended financial aid to Sri Lanka, including lines of credit, a currency swap and deferring of loan repayments.

Crisis-hit Sri Lanka has reached a preliminary agreement with the International Monetary Fund (IMF) for a loan of about $2.9 billion, the international lender said in a statement earlier this month – a development expected to help the country stir out of the crisis.

For more reliable and latest news