PTI, New Delhi
Published by: Sanjeev Kumar Jha
Updated Saturday, 15 January 2022 02:10 PM IST
India’s neighbor Sri Lanka is facing a major financial crisis these days. India stepped in to assist Sri Lanka in such situations. Foreign Minister S Jaishankar on Saturday held talks with Sri Lankan Finance Minister Basil Rajapaksa and signed a number of agreements.
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Key agreements between the two countries
During the meeting, an agreement was reached on currency exchange of Rs 2,965 crore and installment payments of Rs 3,705 crore. Apart from this, a term loan facility of Rs 7,400 crore for essential commodities and a loan facility of Rs 3,700 crore for purchase of fuel were also discussed.
Sri Lankan Finance Minister Basil Rajapaksa has asked India for help
Let us know that Sri Lankan Finance Minister Basil Rajapaksa, who is facing a major financial crisis, visited New Delhi in December 2021 and appealed for help to Sri Lanka, which is struggling with the financial crisis.
Financial crisis in Sri Lanka, demand for loan from India
Sri Lanka has a crisis of almost all essential commodities. In such a situation, the island nation sought a $ 1 billion loan from India for the import of essential goods. Central Bank of Sri Lanka Governor Ajit Nivard Cabral said Sri Lanka was in talks for another loan from China as part of its efforts to restructure its debt repayments. However the amount of the loan has not been decided yet.
Trade between the two countries is gaining momentum: Bank of Sri Lanka
The Governor of the Bank of Sri Lanka said that Sri Lanka was in talks with India for a $ 1 billion loan for import of goods. This will help Sri Lanka repay its debt and boost trade between the two countries. Sri Lanka is currently facing a shortage of all essential commodities due to the dollar crisis for import payments. Sri Lankan government officials say a $ 1 billion loan from India will be limited to food imports. The same farmers have warned that there will be a shortage of food grains in the country in the next two months.