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India Extends $900 Million Support To Assist Sri Lanka Tide Over Its Financial Disaster

New Delhi: India has prolonged a US $900 million help to neighbour Sri Lanka that’s reeling below a extreme financial disaster. 

The $900 million assist comes within the type of a $400 million foreign money swap and deferment of over $500 million due for settlement to the Asian Clearing Union (ACU).

Indian Excessive Commissioner to Sri Lanka Gopal Baglay and Sri Lanka’s central financial institution Governor Ajith Nivard Cabraal met on this regard on Thursday.

In a tweet, the Indian Excessive Fee in Sri Lanka stated India expressed “strong support” to SriLanka within the wake of the Reserve Financial institution of India (RBI) extending over $900 million services during the last week. “These comprise deferment of Asian Clearing Union settlement of over USD 500 mn and currency swap of USD 400 mn,” the mission posted.

The excessive commissioner stated these steps have been “in line with Flag of India’s strong commitment to stand with Flag of Sri Lanka for economic recovery and growth”. 

Cabraal additionally took to Twitter to substantiate and acknowledge the foreign money swap and different help. 

“Had an excellent discussion with Indian High Commissioner to #SriLanka HE Gopal Baglay at my office this morning where he confirmed the #SAARC #SWAP by RBI and other forms of bilateral cooperation,” he posted.

In July 2020, the RBI had prolonged an analogous swap of $400 million to Sri Lanka when it was reeling below the primary first wave of the Covid pandemic. 

The island nation is below a extreme overseas reserve crunch and there are fears it might default on debt compensation. Sri Lanka has over $7 billion excellent debt this 12 months, beginning with $500 million Worldwide sovereign bonds maturing on January 18.

The central financial institution has stated the nation is assured that it is going to be capable of repay all of the money owed. 

India’s newest assist comes per week after it signed an settlement with Sri Lanka on collectively growing the Trincomalee oil tank farm alongside the north-eastern coast.

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