Rajapaksa recalled India’s longstanding cooperation with Sri Lanka and “deeply appreciated the gestures of support”, the statement said. They agreed to remain in touch for guiding mutually beneficial economic cooperation. It added, “As close friends and maritime neighbours, both India and Sri Lanka stand to gain from closer economic inter-linkages.”īoth ministers noted that recent steps taken by the Sri Lankan government for jointly modernising the Trincomalee oil tank farm will boost the confidence of investors and enhance Sri Lanka’s energy security. The statement said India “has always stood with Sri Lanka, and will continue to support Sri Lanka in all possible ways for overcoming the economic and other challenges posed by Covid-19 pandemic”. He said he assured Rajapaksa that India will take up initiatives to support Sri Lanka at this important juncture with other international partners. Jaishankar also tweeted that India will be a “steadfast and reliable partner of Sri Lanka”. The ministers “positively noted” the extension of $400 million under the Saarc currency swap arrangement and deferral of the ACU settlement of $515.2 million, the statement said. Jaishankar tweeted the two sides discussed the “early realisation” of these loans. Analysts believe the rapidly depleting foreign exchange reserves could result in a default on external debt.įollowing a meeting between Indian envoy Gopal Baglay and Sri Lanka’s Central Bank governor Ajith Nivard Cabraal in Colombo on Thursday, India extended a Saarc currency swap facility of $400 million and deferred the payment of $515.2 million to the Asian Clearing Union (ACU) by two months to assist Sri Lanka.Īt their meeting, Jaishankar and Rajapaksa “reviewed the progress in extending Indian credit facility of $1 billion for importing food, essential items and medicine and $500 million for importing fuel from India”, the external affairs ministry said in a statement. Sri Lanka has been grappling with a severe debt and foreign exchange crisis, which has been exacerbated by a downturn in tourist arrivals because of the Covid-19 pandemic. The matter figured in a virtual meeting between external affairs minister S Jaishankar and Sri Lankan finance minister Basil Rajapaksa, who visited New Delhi last month to discuss a four-point financial assistance package. NEW DELHI: India and Sri Lanka on Saturday reviewed the progress in extending loans worth a total of $1.5 billion to the island nation for emergency purchases of food, medicines and fuel to tide over an economic crisis.

Srilanka currency compare to india