India shrugs off report claiming it stopped financial aid to Sri Lanka, promises support through long-term investments

India asserted that it continues to be supportive of Sri Lanka in all possible ways, in particular by promoting long term investments from India in key economic sectors in Sri Lanka for its early economic recovery and growth.

TN National Desk

Updated Sep 20, 2022, 15:05 IST

Flags of India and Sri Lanka

Photo : PTI

Colombo: India on Tuesday shrugged off a report claiming it has stopped financial support to crisis-hit Sri Lanka and went on to promise continued help through long-term investments. India has given nearly USD4 billion of financial help this year alone to the island nation as it faced its worst economic crisis in more than seven decades.

In an official statement, High Commission of India in Sri Lanka said, "We have seen the relevant media reports. We would like to emphasise that India has extended unprecedented bilateral assistance amounting close to USD 4 billion this year for ameliorating the difficulties faced by the people of Sri Lanka."

India has also advocated to other bilateral and multilateral partners supporting Sri Lanka expeditiously in its current economic difficulties. "We have also noted the conclusion of a Staff Level Agreement between IMF and Government of Sri Lanka. Its further approval within IMF is contingent upon, inter alia, on Sri Lanka’s debt sustainability."

The Indian High Commission then asserted that it continues to be supportive of Sri Lanka in all possible ways, in particular by promoting long term investments from India in key economic sectors in Sri Lanka for its early economic recovery and growth.

In addition our bilateral development cooperation projects in Sri Lanka, which cumulatively total about US$ 3.5 bn, are ongoing, it added.

Meanwhile, Sri Lanka President Ranil Wickremesinghe has also said that Sri Lanka will turn a free trade agreement with India into a comprehensive economic and technological partnership.

Reuters had reported last week citing sources that India did not plan to provide fresh financial support to Sri Lanka, as the island's battered economy started to stabilise after a preliminary loan agreement with the International Monetary Fund (IMF).

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