India’s Assurances to IMF backing Sri Lanka

India sends financing assurances to IMF to back Sri Lanka’s debt restructuring program. Sri Lanka’s three largest bilateral lenders are China, Japan, and India. India’s backing is a critical step for Sri Lanka to receive a $2.9 billion package from IMF

Sri Lanka’s Debt Crisis

  • Sri Lanka is facing worst economic crisis since 1948
  • Challenges include shortage of dollars, runaway inflation, and steep recession
  • Sri Lanka owes India around $1 billion that will come under the debt restructuring plan
  • Sri Lanka’s chances of swift assistance now depend on similar assurances from Japan and

Need for Assurances

  • New Delhi’s backing is critical for Sri Lanka to unlock a $2.9 billion IMF loan
  • Sri Lanka needs to secure prior financing assurances, put debt on sustainable path, and increase public revenue
  • IMF stresses importance of joint talks involving China, Japan, and India

Important takeaways for all competitive exams:

Sri Lanka Capitals: Sri Jayawardenepura Kotte; Currency: Sri Lankan rupee.

Sri Lanka Prime Minister: Mahinda Rajapaksa; Sri Lanka President: Gotabaya Rajapaksa.
India-Bangladesh Friendship Pipeline Project




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