Will continue to be a 'steadfast friend' of Sri Lanka, says India
Sri Lanka is attempting to obtain a USD 2.9 billion bridging loan from the IMF
Promising that it would continue to remain a "steadfast friend" of Sri Lanka, India on Thursday said that it is commited to strengthening the bilateral economic partnership.
As Sri Lanka struggles to obtain guarantees from significant bilateral creditors to close a crucial deal with the IMF, Sri Lankan President Wickremesinghe stated that the country held "successful talks" with India on debt restructuring.
He made the comment during the inaugural session of the Sri Lanka Economic Summit 2022 on Monday.
In addition to seeking financial guarantees from its three largest creditors, China, Japan, and India, Sri Lanka is attempting to obtain a $2.9 billion bridging loan from the International Monetary Fund (IMF), which is necessary for Colombo to receive the rescue package.
Responding to President Wickremesinghe's comment on holding "successful" debt restructuring negotiations, the Indian High Commission in Sri Lanka tweeted on Thursday,
"Thank you H.E President @RW_UNP. #India will continue to be a steadfast friend of #SriLanka and stand by our brethren. We are committed to strengthening the bilateral economic partnership for mutual benefit."
Due to an extreme lack of foreign exchange reserves, Sri Lanka is now experiencing its greatest economic crisis since gaining independence in 1948. Due to the foreign exchange crisis, Sri Lanka announced defaults on its international debt in mid-April.
However, being a good neighbor and friend, India aided the crisis-ridden island nation on many fronts, from financial assistance to humanitarian necessities.