(Photo Credit: Meera Srinivasan / The Hindu) (Photo Credit: Meera Srinivasan / The Hindu)
Dec 04, 2021

Basil returns to Sri Lanka empty handed; Indian relief package details in January

Indian Finance Minister Nirmala Seetharaman and External Affairs Minister S.K. Jayashankar had informed Finance Minister Basil Rajapaksa that India would officially announce the economic relief package given to Sri Lanka to overcome the country’s economic crisis, next January.

The Indian ministers added that the economic package would apply to the strengthening of foreign reserves, the supply of food and medicine, the promotion of the energy sector and investment.

The economic package for Sri Lanka, which has already been approved by the Indian Ministry of Finance, will be approved by the Indian Cabinet in January.

Finance Minister Basil Rajapaksaand Sri Lanka’s High Commissioner to India Milinda Moragoda had informed the Government of India of the relevant proposals.

Basil Rajapaksa and Secretary to the Ministry of Finance SR. Attygalle and High Commissioner Milinda Moragoda met the Indian Finance Minister and External Affairs Minister twice recently.

Meanwhile, 'The Hindu' reports that "President Gotabaya Rajapaksa’s request for a $1 billion swap, made directly to PM Modi during a telephone conversation in May 2020, has not yet materialised."

"India has also delayed a decision on a request PM Mahinda made directly to PM Narendra Modi during a meeting in February 2020 for a debt moratorium waiver to help Sri Lanka tide over its economic problems that have been exacerbated by the pandemic," it adds.