India says no more financial aid to Sri Lanka

Friday, 16 September 2022 00:00 - - {{hitsCtrl.values.hits}}

India has already provided nearly $ 4 billion financial support to Sri Lanka and does not plan to provide fresh financial support as the island nation’s crisis-hit economy is starting to stabilise following the preliminary loan agreement with the International Monetary Fund (IMF) Reuters news agency reported.

Reuter’s report quoting an Indian Government source with direct knowledge of discussions with Sri Lanka said the island nation has been given $ 3.8 billion in aid so far and as a country, it is not possible to provide aid continuously.

“We have already given $ 3.8 billion worth of assistance. Now it’s all about the IMF,” Indian official was quoted. “Countries can’t keep giving assistance.”

Reuters pointed out that India was the most supportive country for Sri Lanka, which was suffering from an economic crisis without foreign exchange to pay for imports.

A Sri Lankan Government source has told Reuters that India’s decision was not a surprise and that New Delhi had “signalled” to them a few months ago that there would be little further large-scale support forthcoming. The source, however, has said that India would be invited to a donor conference that Sri Lanka was planning to hold with Japan, China and possibly, South Korea, later this year.