Sri Lanka has asked for a new loan of $ 1.5 billion from India. The Governor of the Central Bank of Sri Lanka gave this information. The government of Sri Lanka urgently needs money to import everyday items.
Supply of essential things decreased in Sri Lanka
In difficult times, he has sought help from his neighboring country. The situation in Sri Lanka, with a population of 22 million, is deteriorating rapidly. People are not even getting essential items. The prices of essential commodities like rice, sugar, bread, milk have reached the sky.
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Government does not have enough foreign exchange
Sri Lanka does not have enough foreign exchange to import. Its forex reserves have fallen 70 per cent. The value of Sri Lankan Rupee has fallen drastically. The government is left with no other way but to seek foreign aid. The government is thinking of taking help from the IMF. She is delaying it probably because she is no longer confident in her ability to repay the loan.
India has already helped Sri Lanka
Earlier, Sri Lanka has taken financial help of $ 1 billion from India. Earlier this month, Sri Lanka’s Finance Minister Basil Rajapaksa had visited India. Then India had given this financial help to its neighboring country. Sri Lanka’s Central Bank Governor Ajit Nivard Cabral said, “Talks are on to get another $1.5 billion in aid from India.”
There was tension in the relationship with Sri Lanka
It is said that the Indian government can give new financial assistance of $ 1.5 billion to Sri Lanka. It will be used for importing essential commodities like rice, flour, pulses, sugar and medicine. India is helping Sri Lanka in difficult times. Earlier the Sri Lankan government had shown its inclination towards China. This had an impact on Sri Lanka’s relationship with India.
India assured of help
On Monday this week, India’s External Affairs Minister S Jaishankar met Sri Lankan President Gotabaya Rajapaksa and Sri Lankan Finance Minister Kabaral in Colombo. After this Jaishankar did a tweet. In this he had said that we have assured Sri Lanka of continuing help.
Earlier this year, India had approved a currency swap of $400 million and a line of credit of $500 million to Sri Lanka. It was going to be used to buy fuel. Sri Lanka’s Finance Minister Kabaral said that India will continue to be his partner in Sri Lanka’s progress.
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