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The Hindu: External Affairs Minister S. Jaishankar’s visit to Colombo on Thursday will focus on “supporting Sri Lanka” in its current economic crisis, Government sources said, adding that talks are ongoing in the field of energy security, food security, currency swap arrangements as well as talks about restructuring Sri Lanka’s debt. The two-day visit is expected to see some announcements.
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The Hindu: External Affairs Minister S. Jaishankar’ |
“India is expected to give a positive response to Sri Lanka’s requirements, in keeping with India’s support last year as well,” said a source, citing India’s combined package of about $ 4 billion including loans, credit lines for the purchase of essentials and a loan deferment through the Asian Clearing Union. In addition, talks are expected on two possible MoU’s — on the Trincomalee development project and the long-pending plan for a cross-strait transmission line that would allow Sri Lanka access to India’s plans for an energy grid along with other countries like Nepal, Bhutan and Bangladesh.
The sources stressed that while assisting Sri Lanka with its current economic difficulties is a priority, Jaishankar’s visit, his first with the six-month-old Government in Colombo, would see a comprehensive review of bilateral ties.
Meanwhile, diplomatic sources said that the support, in the form of “written financial assurances” from India would be critical for Sri Lanka as it works with its other creditors to resolve the economic crisis.
Announcing the visit by Minister Jaishankar, Sri Lankan President Ranil Wickremesinghe said that he had discussed the need for the debt restructuring program with all Sri Lanka’s creditors, including the 22-nation ‘Paris Club’ of 22 developed nations that hold much of the global debt and discuss solutions to debt crisis together.
“Japan and the Paris Club, two of our major creditors, have expressed their willingness to assist. We have already begun talks with India and China. According to the discussions with China Exim Bank recently, we’re currently debating on how to restructure our debt. The Chinese side has agreed to move quickly,” Wickremesinghe told a group of businessmen last week
He said that Sri Lanka’s “only” option was to seek the support of the International Monetary Fund (IMF) for nearly $ 3 billion bailout, and was also hopeful of a package from the Asian Development Bank (ADB).
