Colombo, June 30 (newsin.asia): The Indian High Commission in Sri Lanka on Tuesday clarified that India is in discussion with Sri Lanka on the latter’s request for debt re-scheduling.
A press release from the High Commission said that India and Sri Lanka have been engaged in “close and constructive discussions” on rescheduling Sri Lanka’s repayment to India, and on also on the currency swap under bilateral and SAARC arrangements.
“The matter had been taken up at the leadership level and has been followed up by senior functionaries bilaterally. The High Commissioner of India to Sri Lanka held discussions at senior levels in Colombo on Monday on progressing the ongoing official discussions regarding Sri Lanka’s requirements.”
“In the post-COVID world, India remains committed to partnering Sri Lanka closely for the latter’s sustained economic recovery and shared prosperity,” the release said.
A report in The Hindu had earlier said that Sri Lanka is turning to China for debt relief in the absence of a suitable response from India. The report also quoted an Indian source as saying that Sri Lanka had not responded to a proposal for a video conference to discuss the issue of debt moratorium.
With external debt mounting to US$ 59 billion, and the economy down due to the COVID-19, pandemic, Sri Lankan President Gotabaya Rajapaksa and Prime Minister Mahinda Rajapaksa have been asking India, China, the European Union and multilateral donors a moratorium on repayment.
(The picture at the top shows Sri Lanka’s Ministry of Finance)