Sri Lanka’s Financial Crisis Deepens, India helps with Petrol and Diesel under a credit line

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Due to an earlier imposed emergency and an overall reduction in foreign reserves, Sri Lanka is facing the worst financial crisis in its history since independence. In continuation of the neighbour’s first policy, India has sent 270000 metric tonnes of petrol and diesel to Sri Lanka under the line of credit to deal to help its transport infrastructure and to some extent tackle the power shortage.

“A consignment of 36,000 metric tonnes of petrol and 40,000 metric tonnes of diesel was delivered to Sri Lanka in the last 24 hours. The total supply of different types of fuel under Indian assistance now exceeds 270,000 More MT,” tweeted the Indian High Commission in Colombo.

India helps sri lanka

Sri Lanka is grappling with its worst financial crisis in years. The economy continues to collapse as the coronavirus pandemic hit the tourism industry, on which the Sri Lankan economy is heavily dependent. The island nation is dealing with huge inflation in the food supply and major power cuts.

Sri Lanka’s Finance Minister Basil Rajapaksa, during his recent visit to New Delhi, was ensured by the Government that it will always stand by the island nation as it plays a central role in New Delhi’s “neighbourhood first policy”. India, in pursuance of its policy, helps Sri Lanka in dealing with the emerging turbulent situation.

A major misconception among people is that Sri Lanka is facing a crisis because of its high debt obligations to China, although in reality, the debt from China is only a fraction of the role in the Sri Lankan crisis. The Sri Lankan government leased its Hambantota port to China for 99 years to pay off the debt.

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IS NewsDesk
Stories curated by our interns and news crew. Originally reported or general compilation from various available sources and news agencies.

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