Covid-19: India, Sri Lanka hold talks on Colombo’s debt payment

Covid-19: India, Sri Lanka hold talks on Colombo’s debt payment

Indian and Sri Lankan authorities on Monday and Tuesday held talks on rescheduling Sri Lanka’s payment to India and the nation’s $1.1 billion currency swap demand to abate the financial impact of COVID crisis.

A spokesperson for the Indian mission in Sri Lanka said, “In the context of the scenario worrying Sri Lankan economy’s external sector, the 2 countries have been taken part in close and constructive conversations” on the issue.

Indian High Commissioner to Sri Lanka Gopal Baglay held discussions at senior levels in Colombo on Sri Lanka’s requirements.

The statement stated, “In the post-COVID world, India remains dedicated to partner Sri Lanka closely for the latter’s continual economic recovery and shared prosperity.”

The matter has actually been raised at the leadership level during PM Modi’s telephonic conversation with Sri Lankan President Gotabaya Rajapaksa last month on 23 May. Throughout the talks, the Sri Lankan President requested the Indian government to supply USD 1.1 billion unique SWAP center to top up USD 400 million under SAARC Facility.

The Indian readout said, “Prime Minister assured the Sri Lankan President that India would continue to provide all possible support to Sri Lanka for alleviating the effects of the pandemic.”

President Rajapaksa likewise looked for Indian help to revive key infrastructure tasks in the Indian Ocean Island country consisting of hastening up the building and construction of the East Terminal of the Colombo Port.

Learn More