New Delhi: External Affairs Minister S. Jaishankar will travel to Maldives and Sri Lanka from 18-20 January 2023, according to the official statement released by the Ministry of External Affairs. During his visit, Jaishankar will meet Maldivian President Ibrahim Mohamed Solih and hold discussions with the Minister of Foreign Affairs Abdulla Shahid to discuss the special partnership between the two countries.


In India's vision of "SAGAR" (Security and Growth for All in the Region) and "Neighborhood First," Sri Lanka and the Maldives are two of its most important maritime neighbors in the Indian Ocean Region. 


"EAM’s visit is testimony to the importance that India attaches to its close and friendly relations with the Maldives and Sri Lanka," said the official statement.


Meanwhile, Sri Lankan President Ranil Wickremesinghe has stated that Sri Lanka will hold debt restructuring talks with India when is expected to visit Colombo, reported news agency PTI. This comes as the cash-strapped nation tries to find a way out of its worst financial crisis. 


The crisis-stricken island nation is attempting to obtain a bridge loan of USD 2.9 billion from the International Monetary Fund (IMF). In order for Colombo to receive the bailout package, it has been attempting to obtain financial assurances from its major creditors, China, Japan, and India.


As Sri Lanka pursues negotiations with creditors to meet the global lender's condition for the facility, the IMF bailout has been suspended.


President Wickremesinghe stated that his government has concluded debt restructuring talks with Japan and will hold such meetings with India this month in an address to trade unionists on Saturday.


Wickremesinghe, who is also in charge of the finance ministry, said that talks about restructuring the debt with China's Exim bank have been ongoing for some time.


"On January 19, the Indian foreign minister is expected to visit and we will continue to have debt restructuring talks with India,” Wickremesinghe said, quoted by PTI.


Although the specifics of Jaishankar's trip to Colombo have not been made public, it is anticipated that he will hold discussions with the island nation's top leadership.


India provided nearly $4 billion to Colombo last year, providing a much-needed lifeline to a neighbor in need.


As the financial crisis began, India announced a USD 900 million loan to Sri Lanka to replenish its depleted foreign reserves.


Later, it offered Sri Lanka a $500 million credit line to help pay for fuel purchases. The severity of the situation necessitated an increase in the credit limit to USD 700 million later.


After street protests erupted due to severe shortages of essentials, Indian credit lines have been used to import fuel and other necessities since the beginning of 2022.


President Wickremesinghe emphasised that the island nation had no other choice but to receive a bailout package from the IMF.


The president stated that he was anticipating the IMF facility in three to four tranches.


He stated to the trade unionists, "I want to lift this country out of the plunge sooner."


As required by its agreement with the IMF for the USD 2.9 billion facilities over four years, Sri Lanka began debt restructuring negotiations with its creditors in September of last year.


After announcing its first sovereign debt default ever in April of last year, it began negotiating a bailout with the IMF.


The island nation would be able to get bridging financing from markets and other lending institutions like the ADB and World Bank thanks to the IMF facility.


Wickremesinghe stated, "We would then recommence by the end of this year several projects that were stalled with Japan."


He stated that Sri Lanka needed to be wary of falling growth in Europe and the United States, which would have a direct impact on the exports of the nation, and that there were no quick fixes to the current crisis.


Due to the stringent economic reform measures that the government will be putting into place, the president's meeting with unions assumes significance.


Trade unions have already voiced opposition to proposed increases in personal taxes, electricity rates, and privatisation of state-owned businesses.


In protest of personal tax increases, the doctors' union will observe a black week later this month.


The meeting's participants, according to their statements, emphasised the significance of achieving consensus on the proposed reforms.


They stated that they were opposed to the government's plan to privatise state-owned businesses.


Wickremesinghe recently stated that he intended to increase reserves by selling state-owned businesses. Sri Lankan Airlines and Sri Lanka Telecom's privatization plans have been made abundantly clear by the government.


Due to a severe lack of foreign exchange reserves, Sri Lanka experienced an unprecedented financial crisis in 2022, its worst since it gained independence from Britain in 1948. This sparked political unrest and led to the removal of the all-powerful Rajapaksa family. 


(With PTI Inputs)