Crisis-Ridden Sri Lanka Seeks Bridging Finance From India Till IMF Bailout

This comes after Finance Minister Nirmala Sitharaman held several rounds of discussions with her Sri Lankan counterpart and High Commissioner.

Representational Image (Source: ANI)

New Delhi: Sri Lanka has asked India to provide bridging finance for the crisis-ridden nation till the International Monetary Fund (IMF) provides adequate funds, which may take another three to four months, ANI reported sources as saying.

The news agency reported sources as saying that Sri Lanka has also asked India to use its influence over friendly countries like Japan to help Colombo and reach out to multilateral organizations to assist the island nation.

This comes after Finance Minister Nirmala Sitharaman held several rounds of discussions with her Sri Lankan counterpart and High Commissioner.

Sitharaman was positive about the proposal, said a source familiar with the development, adding she is expected to reach out to other friendly countries to raise aid for Sri Lanka, which has been hit by the economic crisis.

Sources further said, as per the news agency, that Sri Lanka’s Finance Minister Ali Sabri is expected to meet Sitharaman in Washington DC in the coming week.

India has already provided USD 2.4 billion in aid to the island nation.

Sri Lanka will, however, need a lot of financial support for imports for the next four months until the IMF deal is in place.

The island nation will start talks with the IMF tomorrow and the process is likely to take about four months to get operational.

Sri Lanka is, therefore, looking for bridging finance for this period from India and other nations.

India is the first and only country to come forward to get Sri Lanka out of its financial mess, ANI reported sources familiar with the developments as saying and hence Colombo sees this as a new chapter in bilateral ties with New Delhi.

Sources added Sri Lanka sees this as a long-term way beyond crisis and expects to play a major role in India’s energy aspirations for the future.

Sri Lanka is battling a severe economic crisis due to lack of food and fuel, affecting a large number of people, resulting in massive protests over the government’s handling of the situation.