Cape Times E-dition

India ready to help Sri Lanka economy

SRI Lanka’s parliament has cancelled its remaining sittings for the week to save fuel, officials said yesterday, with a disastrous economic crisis rapidly depleting the island nation’s already scarce petrol supplies.

A foreign currency shortage has prevented the import of food, oil and medicines, while runaway inflation and regular blackouts have made life miserable for Sri Lanka’s 22 million population. The energy ministry said a gasoline shipment that was due had been delayed. Motorists were already waiting in line for days to top up their tanks.

Neighbouring India, which has offered several credit lines for Sri Lanka to import essentials, sent a team of experts yesterday to assess the island’s deteriorating economic situation.

The Indian High Commission in Colombo said New Delhi had already extended $3.5billion worth of assistance to address the currency crisis.

New Delhi has been concerned about China’s growing economic and political clout in the South Asian nation, which India has seen as within its sphere of influence. China is one of the top bilateral creditors for Sri Lanka and has several investments in deep sea ports on the island.

Sri Lanka defaulted on its $51bn foreign debt in April and is in talks with the International Monetary Fund for a bailout which could take months.

WORLD

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2022-06-24T07:00:00.0000000Z

2022-06-24T07:00:00.0000000Z

https://capetimes.pressreader.com/article/281779927804674

African News Agency