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Sri Lanka debt moratorium discussed by India Exim Bank, Finance Ministries

RAIL BOOST: India has been a key financier of Sri Lanka’s rail track development and rolling stock.

ECONOMYNEXT – India Finance Ministry and Export Import Bank officials have held online talks with Sri Lanka’s Finance Ministry on structuring a debt moratorium for the country, Delhi’s High Commission in Colombo said.

“The Indian delegation comprising of senior officials from the Ministry of External Affairs, Ministry of Finance, and the EXIM Bank interacted with representatives from the Department of External Resources of Sri Lanka through a Video Conference,” the statement said.

“The constructive discussion between both sides took place in a cordial and positive atmosphere.”

By December 2019 Sri Lanka had 153 billion rupees of loans (about 840 million US dollars) from India. Repayments in 2019 was 16.7 billion rupees (about 77 million US dollars)

Sri Lanka’s President Gotabaya Rajapaksa and Prime Minister Mahida Rajapaksa had asked for India’s support on the matter.

Another round of technical discussion will be held, the High Commission said.

India has been Sri Lanka through credit lines mainly directed at the railways sector. (Colombo/July24/2020)