India’s Assurances to IMF backing Sri Lanka
Sakshi Education
- India sends financing assurances to IMF to back Sri Lanka’s debt restructuring program. Sri Lanka’s three largest bilateral lenders are China, Japan, and India. India’s backing is a critical step for Sri Lanka to receive a $2.9 billion package from IMF
- Sri Lanka is facing worst economic crisis since 1948
- Challenges include shortage of dollars, runaway inflation, and steep recession
- Sri Lanka owes India around $1 billion that will come under the debt restructuring plan
- Sri Lanka’s chances of swift assistance now depend on similar assurances from Japan.
- New Delhi’s backing is critical for Sri Lanka to unlock a $2.9 billion IMF loan
- Sri Lanka needs to secure prior financing assurances, put debt on sustainable path, and increase public revenue
- IMF stresses importance of joint talks involving China, Japan, and India
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Published date : 20 Jan 2023 06:04PM