India has expressed its commitment to supporting Sri Lanka’s recovery from its economic crisis. India has provided financial and humanitarian support worth $4 billion, making it the first creditor nation to offer financing assurances to kick-start the IMF process.
The recent developments in India-Sri Lanka ties have strengthened the friendship and all-around cooperation between the two countries
A total of 17 countries that have extended loans to Sri Lanka this May formed an official creditor committee’ co-chaired by India, Japan, and France to discuss Sri Lanka’s request for debt treatment. ndia’s financial and humanitarian support worth USD 4 billion to Sri Lanka is far in excess of the total anticipated Extended Fund Facility of the IMF.
Due to a serious shortage of foreign exchange reserves, Sri Lanka had a tragic financial crisis in 2022—the worst since it gained independence from Britain in 1948
India was Sri Lanka’s largest trading partner in 2022. Sri Lanka’s exports to India have also grown. The use of Rupees for trade settlement is further helping Sri Lanka’s economy. These are concrete steps to help Sri Lanka’s economic recovery and growth. Last year, India was once again the largest source of tourists for Sri Lanka with over 100,000 tourists