MEA assures 'India stands with Sri Lanka'; highlights extending $3.8 bn aid amid crisis

In view of the current political crisis in Sri Lanka, the Ministry of External Affairs (MEA) on Sunday informed that India has extended unprecedented support of over US$ 3 billion for improving the serious economic situation of the island nation. In response to media queries, the MEA released a letter which stated, "India is Sri Lanka’s closest neighbour and our two countries share deep civilizational bonds".

"We are aware of the many challenges that Sri Lanka and its people have been facing, and we have stood with the Sri Lankan people as they have tried to overcome this difficult period. In pursuance of the central place that Sri Lanka occupies in our Neighbourhood First policy, India has extended this year itself unprecedented support of over US$ 3.8 billion for ameliorating the serious economic situation in Sri Lanka," the letter stated. 

"We continue to follow closely the recent developments in Sri Lanka. India stands with the people of Sri Lanka as they seek to realize their aspirations for prosperity and progress through democratic means and values, established institutions and constitutional framework," as per MEA's letter.

'India supportive of Sri Lanka': EAM Jaishankar

External Affairs Minister (EAM) Dr Subramaniam Jaishankar on Sunday stated that India will "wait and watch" the situation in Sri Lanka as the island nation continues to reel under political turmoil amid mass anti-government protests. Reaffirming India's support, Jaishankar said "We are trying to help and have always been helpful." He also informed that there is currently "no refugee crisis" emerging as the protests stemming from crippling economic collapse turned violent.

"We have been supportive of Sri Lanka, are trying to help, and have always been helpful. They are working through their problem, we will see what happens. There is no refugee crisis right now," Dr. S Jaishankar told reporters in Thiruvananthapuram, Kerala, where he will be staying for three days and is expected to attend over 20 meetings, including one with the regional BJP core committee.

Sri Lanka crisis

Sri Lanka currently has an outstanding foreign debt of $51 billion. Large foreign borrowings, a significant tax reduction package in 2019, and the ravages of the COVID-19 pandemic made Sri Lanka’s public debt burden unsustainable. Colombo's foreign currency reserves plummeted below $50 million.

This, combined with food and energy price shocks earlier this year – exacerbated by the Ukraine war – has led to a debt and balance-of-payments crisis, according to the UN humanitarian office, OCHA. Currently, Sri Lanka has to pay $7 billion in foreign debts by the end of this year and $25 billion by 2026.

(Image: AP/ANI)