Finance
India has assured Sri Lanka that it, along with Japan and the Paris Club, will play a constructive role as Co-Chair of the Creditors Committee.
Vinod K. Jacob, India’s Deputy High Commissioner in Colombo, provided the guarantee. He further stated that India was the first creditor nation to communicate the finance assurances required to kick-start the IMF process in January of this year.
In response to Sri Lanka’s request for debt relief, 17 countries formally organized an official creditor committee in May, co-chaired by India, Japan, and France.
“India’s financial and humanitarian support worth $4 billion is far in excess of the total anticipated Extended Fund Facility of the IMF,” the Deputy High Commissioner said while participating at the inauguration of the Construction, Power and Energy Expo 2023 in Colombo in which nearly 50 Indian companies participated.
During his speech, the Deputy High Commissioner said that the past three years have demonstrated the close links between the people of India and Sri Lanka. “In line with the ‘Neighborhood First’ policy of the Government of India, the Indian High Commission has steadfastly supported the economic and social ministries of Sri Lanka as they navigated the challenges of the Covid pandemic, the economic crisis and the political upheavals during this period,” he said.
External Affairs Minister S. Jaishankar’s “successful” visit to Sri Lanka in January this year opened up new prospects for collaboration through infrastructure investment, industrial, and connectivity promotion. In 2022, India was Sri Lanka’s major commercial partner.
Sri Lanka’s exports to India have increased as well. The use of rupees for commercial settlement benefits the Sri Lankan economy even more. These are concrete initiatives to aid Sri Lanka’s economic rehabilitation and prosperity, according to the Deputy High Commissioner.
“I am glad to note that India was once again the largest source of tourists for Sri Lanka last year with over 100,000 tourists and is continuing to top the chart so to say this year as well. Around one in every five to six tourists in Sri Lanka is an Indian,” he said.
He went on to say that the return of Chennai-Jaffna flights is yet another step in bringing the peoples of the two countries closer together, and that ferry services between the two countries will help even more. In this aspect, connectivity is a force multiplier.
“Recent developments in India-Sri Lanka ties have strengthened our friendship and all-round cooperation. At the same time, the two countries also remain vigilant to address common challenges, especially in the maritime security domain,” Deputy High Commissioner noted.
Referring to the continuing financial crisis that the South Indian island nation is experiencing, Mr. Jacob stated that business circles and the Government of India have resolved to aggressively support Sri Lanka at this time.
Source:OCN
