India is very worried about the worsening situation in neighboring Sri Lanka on Friday. The main cause of concern is the political instability there. It has become difficult to implement the help that India was thinking of giving to improve the economic condition of Sri Lanka.
Jaiprakash Ranjan, New Delhi. India is very worried about the worsening situation in neighboring Sri Lanka on Friday. The main cause of concern is the political instability there. Due to political instability, it has become difficult to implement the help that India was looking to provide to improve the economic situation of Sri Lanka. This year Sri Lanka has been given assistance worth five billion dollars from India. Preparations are on to send the next consignment of petroleum products and medicines. A proposal to give him additional financial credit is also being considered between the Finance Ministry and the RBI. But in the meantime, the kind of situation that has arisen due to the mass movement against President Gotabaya Rajapaksa has made it difficult for India to provide help and also for other countries and agencies. Recently appointed PM Ranil Wickremesinghe has also made the situation more complicated by offering to resign.
Indian High Commission is keeping a watchful eye on the situation in Colombo
Last month, India sent Foreign Secretary Vinay Kwatra along with Economic Affairs Secretary Ajay Seth in the Ministry of Finance and Dr.V Ananth Nageswaran, Principal Economic Adviser, to Colombo to review the situation in Sri Lanka. Officials say that one thing was clearly revealed in the discussions this team had with the Indian High Commission in Colombo that the situation there cannot be corrected without a strong political leadership. After the resignation of former PM Mahinda Rajapaksa, the possibility of improving the situation there has also been dashed.
India has not given any official comment on the current situation there but it has been told that the Indian High Commission is monitoring the whole situation. India is also watching the attitude of the global community towards the situation in Sri Lanka, especially the reaction of China. After taking over as prime minister, Wickremesinghe had sought additional assistance of $1.5 billion from India. Sources say that India is also eyeing the talks between Sri Lanka and the International Monetary Fund (IMF).
Obstacles in the delivery of aid material from political turmoil
Looking at the current situation, doubts have arisen regarding this dialogue. Even if the IMF provides some funds to this country facing financial crisis, then there is a need for a strong government to use it. This is the reason why India does not want to take any hasty decision on the additional loan amount of $ 1.5 billion sought by Sri Lanka.
India is aware that it can help the neighboring country to some extent in oil and grain but cannot meet its debt obligations and foreign exchange reserves requirements. By the way, since March 2022, till now, India’s total assistance of about five billion dollars has been sent to Sri Lanka. This also includes extending the repayment period of $1.5 billion. Apart from this, petroleum products were also being continuously sent to the neighboring country.