Sri Lanka Is Facing The Worst Economic Crisis

Sri Lanka is facing a huge economic crisis: Sri Lanka, facing an economic crisis, has high hopes from India, and talks about fuel supply.

Sri Lanka is in talks with India for another US$ 500 million line of credit for fuel imports amid the ongoing economic crisis in the country.

According to the Daily Mirror report, the issue was discussed when Sri Lanka’s High Commissioner to India Milinda Moragoda met Indian Finance Minister Nirmala Sitharaman last week.

The line of credit is in addition to the US$500 million already extended, the Daily Mirror reported.

Sri Lanka is facing the worst economic crisis

Let us tell you, Sri Lanka is facing its worst economic crisis since gaining independence in 1948.

The slowdown is attributed to a lack of foreign exchange due to the curbs on tourism during the COVID-19 pandemic, which left the country unable to buy enough fuel.

People faced an acute shortage of food and basic necessities, fuel, and gas.

Sri Lanka to buy fuel for 200 million dollars.

According to the Sri Lankan daily, India offered another USD 1 billion lines of credit for essential imports. However, out of this, USD 200 million has been used for fuel imports.

According to the Daily Mirror, the island nation has so far waived nearly 700 million US Indian debt for diesel and petrol.

Sri Lankan PM praises India.

Sri Lankan Prime Minister Ranil Wickremesinghe on Friday praised India for its support amid the ongoing economic crisis and expressed its desire to further strengthen ties between the two countries.

The Sri Lankan PM tweeted, ‘I appreciate on behalf of my country for the support extended by India in this difficult period.

I look forward to further strengthening the ties between the two countries.

India’s appreciation by Wickremesinghe came on the same day when its neighbor donated 25 tonnes of medicines and other medical supplies worth close to SLR 260 million.

The medical consignments were donated at the request of various organizations and hospitals spread across different parts of the country.

The Indian High Commission said that these humanitarian supplies are in continuation of the ongoing support of the Government of India in various forms like financial assistance, foreign exchange assistance, material supplies, etc. to the people of Sri Lanka.

The High Commission said in a statement that these efforts testify to Prime Minister Narendra Modi’s ‘neighborhood first’ policy, which keeps people-to-people engagement at its core.