South East Asian Headlines & Breaking News

IMF bailout only became possible due to Indian support, says Sri Lankan envoy Moragoda

0 251

Economic aid from India to the tune of $4 billion helped debt-ridden Sri Lanka secure its $2.9 billion bailout package from the International Monetary Fund (IMF) earlier this year, the country’s high commissioner to India, Milinda Moragoda, has said.

“India supported us during the crisis last year by extending $4 billion. If India had not provided that support, we would have been in a much more difficult situation,” he said at a special interaction with ThePrint team on 22 June. “There’s no question about it. I think the IMF only became possible because of India.”

In April 2022, Sri Lanka declared its first sovereign debt default — triggered by a forex shortage — amid the worst economic crisis to hit the country since its independence from Britain in 1948. The island nation witnessed soaring inflation, a massive power crisis, and shortages of medicine, fuel and other essentials. The ensuing street protests eventually led to the ouster of then president Gotabaya Rajapaksa.

In an hour-long conversation, Moragoda spoke about the crisis, his country’s current economic condition and its slow path to recovery, and the issue of cross-border drug trafficking.

He also hinted at a possible visit to India by Sri Lankan President Ranil Wickremesinghe next month, but did not divulge details.

Leave A Reply

Your email address will not be published.