India Overtakes China To Emerge As Top Lender For Crisis-Ridden Sri Lanka: Report

India has disbursed $377 million and ADB has disbursed $360 million, which account for 76 per cent of the total disbursements in the first four months of 2022, according to Daily FT.

File Photo: A man carrying a child on his shoulders joins others in an ongoing anti-government demonstration near the president's office in Colombo.

Source : AFP

New Delhi: India has emerged as the largest bilateral lender overtaking China with a total of $968 million in loans in four months of 2022, reported news agency ANI citing Daily Financial Times. In the last five years from 2017-2021, China has remained the largest bilateral lender to Sri Lanka disbursing $947 million, out of which $809 million was obtained as market borrowings from the China Development Bank, Daily Financial Times reported citing public finance.lk.

What is the amount of loan disbursement?

The report said the Asian Development Bank (ADB) has been the largest multilateral lender in the past five years and disbursed funds amounting to $610 million in 2021. India has disbursed $377 million and ADB has disbursed $360 million, which account for 76 per cent of the total disbursements in the first four months of 2022, according to Daily FT. India had provided nearly $4 billion in food and financial assistance to Sri Lanka, India's Permanent Representative to the UN Ruchira Kamboj said, as reported by PTI.

Kamboj was speaking at a UNGA Annual Joint Debate on the Reports of the Peacebuilding Commission (PBC) and Peacebuilding Fund (PBF).

"In our immediate neighbourhood, we are continuing to help our good friend and neighbour Sri Lanka to ensure food security by providing nearly USD 4 billion in food and financial assistance during the past few months," Kamboj added.

On August 22, India sent over 21,000 tonnes of fertilizer to the crisis-ridden neighbour Sri Lanka. "Adding to the fragrance of friendship and cooperation. High Commissioner formally handed over 21,000 tonnes of fertilizer supplied under India's special support to the people of Sri Lanka," tweeted the High Commission of India in Colombo, Sri Lanka.

This was followed by 44,000 tonnes supplied last month under Indian support totalling about $4 billion in 2022. “The fertilizer will contribute to food security and support the farmers of Sri Lanka. It demonstrates benefits to the people from close ties with India and mutual trust and goodwill between India and Sri Lanka," added the High Commission of India.

India has been offering economic assistance to Sri Lanka based on their requirements and is one of the countries that have provided the maximum amount of assistance in time of need.

Sri Lanka has been grappling with an acute economic crisis since the beginning of this year and the government has defaulted on its foreign loans.

The island nation is battling a severe economic crisis with food and fuel scarcity affecting a large number of the people in the island nation. The economy has been in a free fall since the onset of the Covid-19 pandemic.

As a result of the foreign exchange crisis, the nation is unable to import food and fuel leading to power failures. The shortage of essential goods forced Sri Lanka to seek assistance from friendly countries.