would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc.. 
Home
India Is Said to Work on $1.9 Billion Economic Aid for Sri Lanka
2021-12-21 10:10:21.423 GMT
By Shruti Srivastava and Anusha Ondaatjie
(Bloomberg) -- India is working on an economic package
worth as much as $1.9 billion to help Sri Lanka, according to
people with knowledge of the matter, as the island nation
struggles to rebuild foreign reserves that are enough to cover
just a month of imports.
Credit lines being considered include $1 billion in two
equal tranches for importing essentials such as food and
medicines by next month and $500 million for fuel purchases from
India, the people said, asking not to be identified as the
discussions are private. The Reserve Bank of India is also in
talks with Colombo for a $400 million currency swap, they said.
The aid will help Sri Lanka buy more time to build its
foreign exchange reserves, which fell to $1.59 billion as of
November. The pile is enough to barely cover a month’s import,
stoking fresh concerns about the nation’s ability to honor debt
maturing next year -- the reason cited by Fitch Ratings for
cutting the sovereign’s credit score deeper into junk territory
last week.
Earlier this month, Sri Lanka’s Finance Minister Basil
Rajapaksa met with his Indian counterpart Nirmala Sitharaman and
Foreign Minister S. Jaishankar in New Delhi. The two sides
agreed on short- and medium-term cooperation including an urgent
food and health security package, credit to cover import of fuel
from India, early modernization of the Trincomalee tank farm and
a currency swap, according to a statement from the Sri Lankan
High Commission in the Indian capital.
India is negotiating development of Trincomalee oil tank
farm as a part of the assistance deal, one of the people said.
India’s foreign ministry didn’t immediately respond to messages
and an email seeking comment, while Sri Lanka’s media minister
Dullas Alahapperuma didn’t respond to a question on whether the
tank farm was part of conditions to secure inflows from India.
Colombo, which has curbed imports to conserve foreign
exchange, raised fuel prices effective Tuesday to crimp demand
and preserve dollars.
2021-12-21 10:10:21.423 GMT
By Shruti Srivastava and Anusha Ondaatjie
(Bloomberg) -- India is working on an economic package
worth as much as $1.9 billion to help Sri Lanka, according to
people with knowledge of the matter, as the island nation
struggles to rebuild foreign reserves that are enough to cover
just a month of imports.
Credit lines being considered include $1 billion in two
equal tranches for importing essentials such as food and
medicines by next month and $500 million for fuel purchases from
India, the people said, asking not to be identified as the
discussions are private. The Reserve Bank of India is also in
talks with Colombo for a $400 million currency swap, they said.
The aid will help Sri Lanka buy more time to build its
foreign exchange reserves, which fell to $1.59 billion as of
November. The pile is enough to barely cover a month’s import,
stoking fresh concerns about the nation’s ability to honor debt
maturing next year -- the reason cited by Fitch Ratings for
cutting the sovereign’s credit score deeper into junk territory
last week.
Earlier this month, Sri Lanka’s Finance Minister Basil
Rajapaksa met with his Indian counterpart Nirmala Sitharaman and
Foreign Minister S. Jaishankar in New Delhi. The two sides
agreed on short- and medium-term cooperation including an urgent
food and health security package, credit to cover import of fuel
from India, early modernization of the Trincomalee tank farm and
a currency swap, according to a statement from the Sri Lankan
High Commission in the Indian capital.
India is negotiating development of Trincomalee oil tank
farm as a part of the assistance deal, one of the people said.
India’s foreign ministry didn’t immediately respond to messages
and an email seeking comment, while Sri Lanka’s media minister
Dullas Alahapperuma didn’t respond to a question on whether the
tank farm was part of conditions to secure inflows from India.
Colombo, which has curbed imports to conserve foreign
exchange, raised fuel prices effective Tuesday to crimp demand
and preserve dollars.
