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India surpasses China to become Sri Lanka’s top lender.
India has disbursed USD 377 million and ADB has disbursed USD 360 million, accounting for 76% of all disbursements in the first four months of 2022.
Colombo: According to a media source, India has surpassed China to become Sri Lanka’s top bilateral lender with a total of USD 968 million in loans in the first four months of 2022.
China has been Sri Lanka’s top bilateral lender over the past five years, from 2017 to 2021, disbursing USD 947 million, of which USD 809 million came from market borrowings from the China Development Bank, according to the Daily Financial Times (FT) and public finance.lk, respectively.
It claimed that the Asian Development Bank (ADB), which disbursed funding totaling USD 610 million in 2021, was the largest multilateral lender over the previous five years.
According to Daily FT, India has disbursed USD 377 million and ADB has disbursed USD 360 million, accounting for 76% of all disbursements in the first four months of 2022.
Meanwhile, India’s Permanent Representative to the UN, Ruchira Kamboj, stated that India had donated approximately USD 4 billion in food and financial support to Sri Lanka during a UNGA Annual Joint Debate on the Reports of the Peacebuilding Commission (PBC) and Peacebuilding Fund (PBF).
“In our immediate neighbourhood, we are continuing to help our good friend and neighbour Sri Lanka to ensure food security by providing nearly USD 4 billion in food and financial assistance during the past few months,” Kamboj said.
India delivered 21,000 tonnes of fertiliser to its neighbour and country in crisis, Sri Lanka, on August 22.
“Adding to the fragrance of friendship and cooperation. High Commissioner formally handed over 21,000 tonnes of fertilizer supplied under India’s special support to the people of Sri Lanka,” tweeted the High Commission of India in Colombo, Sri Lanka.
“This follows 44,000 tonnes supplied last month under Indian support totalling about USD 4 billion in 2022. The fertilizer will contribute to food security and support the farmers of Sri Lanka. It demonstrates benefits to the people from close ties with #India and mutual trust and goodwill between #India and #Sri Lanka,” added the High Commission of India.
India is one of the nations that has given Sri Lanka the most financial aid in a timely manner and has been at the forefront of providing it in accordance with their needs.
Sri Lanka has been going through a worsening economic crisis since the start of 2022, and the government has stopped paying back its international creditors.
Numerous Sri Lankans are suffering from food and fuel shortages as a result of the country’s severe economic crisis. Since the COVID-19 pandemic began, the economy has been in a free fall.
Sri Lanka is also struggling with a lack of foreign currency, which has, incidentally, interfered with its ability to import food and fuel and resulted in power outages throughout the nation. Sri Lanka was compelled to ask friendly nations for assistance due to a shortage of necessities.
