Finance
Sri Lanka used the first $330 tranche of the IMF loan to repay a portion of the Indian credit line.
Ranjith Siyambalapitiya, State Minister for Finance, told the media that $120 million was used to repay the Indian loan.
“Over the recent past India gave credit lines to import much-needed essentials, including medicine and fuel, and we were to settle part of it on Thursday which we did it on that day itself,” the State Minister said.
“It is important that we follow the debt repayment,” he added.
Following the economic crisis and Sri Lanka’s debt default in April of last year, India provided more than $4 billion in financial assistance, including credit lines.
India was also among the first to assist Sri Lanka in obtaining an IMF bailout by agreeing to restructure its debt with the troubled southern neighbor.
Following China’s agreement to restructure its loans, Sri Lanka’s largest bilateral creditor, the IMF agreed to award the conditional loan over a 48-month period.
People took to the streets in March last year in response to Sri Lanka’s financial crisis, which resulted in shortages of essential items such as food, fuel, and medicine, as well as long lines to purchase them.
Street fighting brought down Sri Lanka’s government, forcing President Gotabaya Rajapaksa to flee the country and handing over power to Ranil Wickremesinghe.
Source:IANS
