India’s help is not a donation, a plan has to be made to repay the debt: Vikram Singh

Sri Lankan Prime Minister Ranil Wickremesinghe said in Parliament on Wednesday that the financial aid provided by India was not a charity and the country needs to come up with a plan to repay the debt. The Prime Minister reiterated in Parliament that Sri Lanka is facing a serious economic crisis. With an acute shortage […]
 


India’s help is not a donation, a plan has to be made to repay the debt: Vikram Singh

Sri Lankan Prime Minister Ranil Wickremesinghe said in Parliament on Wednesday that the financial aid provided by India was not a charity and the country needs to come up with a plan to repay the debt. The Prime Minister reiterated in Parliament that Sri Lanka is facing a serious economic crisis. With an acute shortage of essential commodities such as food, medicine, cooking gas and fuel, Sri Lanka is facing its worst economic crisis since independence in 1948. India is making every effort to ensure that the situation in Sri Lanka does not worsen and that it is supplying fuel. However the condition is still serious. Wickremesinghe informed Parliament that a team of senior RBI officials was reaching Colombo and would assess the situation.

India gave 4 billion aid

“We have borrowed US$4.4 billion under the Indian line of credit,” Wickremesinghe told Parliament. We have requested more credit support from our Indian counterparts, but India will not be able to continue to support us like this. There is a limit to their help. On the other hand, we should also have a plan to repay this debt. This is not a charitable donation. He told the Parliament about the steps taken by the government so far to deal with the economic crisis. The Prime Minister said that a team of top officials of the Reserve Bank of India (RBI) will reach Colombo on Thursday to assess the local economic situation. Wickremesinghe said Sri Lanka was now facing a much more dire situation than lack of fuel, gas, electricity and food.

Sri Lanka’s expectation from IMF

Wickremesinghe said Sri Lanka’s only hope now is from the International Monetary Fund. The country is constantly in talks with the IMF to raise funds. However the IMF wants to confirm the loan repayment and plan the recovery of the economy before giving the loan. The Prime Minister said that our economy has completely collapsed. This is the most serious problem facing us today. These issues can be resolved only by reviving Sri Lanka’s economy. To do this we must first address the crisis of foreign exchange reserves.