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COLOMBO, Jan 20 (PTI) — Sri Lanka on Friday thanked India for its generous support of a US$3.9 billion credit line last year and assured the IMF to restructure the country’s debt funding flows after External Affairs Minister S Jaishankar conveyed India’s commitment to increase investment. to hasten the economic recovery of the indebted island nation.
Jaishankar, who is on a two-day visit here, met top Sri Lankan leaders on Thursday, including Sri Lankan President Ali Sabri and President Ranil Wickremesinghe.
“It is my honor to welcome in Colombo my friend Dr S. Jaishankar, EAM of India. I thank him for his generous support of a US$3.9B line of credit last year, and his assurances to the IMF to restructure its debt. Fortunately, Sri Lanka has caring Thoughtful friend!” Sabri tweeted Friday.
“Great to meet Indian External Affairs Minister Dr. S. Jaishankar in Colombo. Discussed strengthening bilateral relations, people-to-people engagement, trade and investment ties between our two countries and thanking India for its unwavering assistance to Sri Lanka,” he tweeted on Thursday.
Jaishankar, arriving here from the Maldives on the second leg of his trip between the two countries, met with Sabri and discussed issues of common and regional interest.
“Had a pleasant meeting tonight in Colombo with Foreign Minister Ali Sabri and other ministerial colleagues. Discussed cooperation between India and Sri Lanka in infrastructure, connectivity, energy, industry and health,” Jaishankar tweeted Special wrote.
President Wickremesinghe hosted a working dinner for the ministers.
“Looking forward to my discussions with the leadership tomorrow morning,” Jaishankar tweeted after holding talks with Sabri, as India informed the IMF that global banks want creditors to provide the cash-strapped island with much-needed aid. Guarantee of rescue.
Sri Lanka, which is trying to secure a $2.9 billion bridge loan from the International Monetary Fund, is negotiating to secure financial guarantees from its main creditors – China, Japan and India – a sine qua non for Colombo’s bailout package .
The IMF bailout has been put on hold as Sri Lanka seeks to negotiate with creditors to meet conditions on the facility from global lenders.
“Conveyed our commitment to increase investment flows to Sri Lanka to accelerate its economic recovery,” Jaishankar tweeted after the meeting.
Jaishankar will call on President Wickremesinghe on Friday.
Jaishankar is also scheduled to meet Prime Minister Dinesh Gunawardena.
Sri Lanka’s unprecedented economic crisis has just played into India’s concerns about its southern neighbor, given the island nation’s close economic partnership with China before that.
A year ago, when the crisis began to unfold, India provided aid worth $4 billion.
President Wickremesinghe told parliament on Tuesday that his government had “successfully” concluded debt restructuring talks with India.
India’s Deputy Finance Minister Rajat Kumar Mishra informed IMF Managing Director Kristalina Georgieva on Tuesday that New Delhi had confirmed its support for Sri Lanka on debt restructuring.
Last week, Sri Lanka completed debt restructuring talks with Japan.
Sri Lanka began debt restructuring talks with its creditors in September last year, guaranteed under its agreement with the International Monetary Fund on a four-year $2.9 billion loan.
After announcing its first sovereign default in April last year, it began talks with the International Monetary Fund on a bailout.
The IMF loan will enable the island nation to obtain bridge financing from the market and other lenders such as the ADB and the World Bank.
Jaishankar accidentally became the first foreign dignitary to visit Sri Lanka during the economic crisis.He visited Sri Lanka last March at the height of the crisis
Lankans believe that India’s “neighborhood first” policy has played a big role.
“Sri Lanka is a close friend and neighbor and India always stands with the people of Sri Lanka,” the foreign ministry said in New Delhi on Tuesday. Jaishankar’s visit to Colombo proves that India attaches great importance to the close and friendly relations with Sri Lanka.
Sri Lanka will encounter an unprecedented financial crisis in 2022, the worst since independence from the United Kingdom in 1948. Due to the serious shortage of foreign exchange reserves, it has triggered domestic political turmoil and led to the resignation of the full-power Rajapaksa family.
(This is an unedited and auto-generated story from a Syndicated News feed, the content body may not have been modified or edited by LatestLY staff)
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