India to increase development aid for debt-ridden Sri Lanka

India and Sri Lanka Will discuss a debt restructuring plan to help the country come out of its deep economic woes.

“This agreement on community development projects in Sri Lanka with the support of the Government of India was signed in May 2005. It had a project limit of Rs 300 million, doubling from today’s agreement to Rs 600 million,” it said in a statement. Will go.” said the office of President Ranil Wickremesinghe.

The statement from the President’s Office said that “special attention was paid to the debt restructuring program of Sri Lanka, which received a positive response from the Government of India”.

The minister said that India understands the situation in Sri Lanka and is ready to provide all possible assistance to the country. He also handed over 300 houses in Galle, Kandy and Nuwara Eliya as part of a housing project implemented by India.

The foreign minister’s visit to Sri Lanka was much awaited as India agreed to provide the necessary financial assurances requested by the International Monetary Fund (IMF). Sri Lanka has applied for $2.9 billion relief package from the IMF.

The bailout was put on hold by the IMF as Sri Lanka held talks with its creditors to meet the global lender’s condition for the credit facility.

Various countries appreciated India’s move of giving financial assurance. “The great news is that India has reaffirmed its commitment to provide debt relief to Sri Lanka, including restoring debt stability under an IMF-backed programme,” the Australian government said.

India has helped the island nation in distress with both monetary and non-monetary packages. The country has extended nearly $4 billion in the form of loans and rollovers to debt-ridden Sri Lanka.

(With inputs from PTI)