India will provide Sri Lanka with an additional $500 million in financial assistance, Sri Lanka’s foreign minister told reporters on Wednesday, adding that Bangladesh is willing to postpone a $450 million debt repayment.
“Assistance by the IMF will take about six months to come to us and it will come in tranches,” Sri Lankan Foreign Minister G. L. Peiris said. “During the intervening period, we need to find funds to keep our people supplied with essentials.”
Sri Lanka has been struggling to pay for imports after its foreign exchange reserves plummeted sharply in recent times, causing a devaluation of its currency and spiralling inflation.
“India has agreed to provide an additional USD 500 million for our fuel imports,” Mr Sabry said on Friday, while adding that he was hopeful that New Delhi would consider handing out another USD 1 billion dollars as a credit line.
India has already agreed to defer USD 1.5 billion in import payments that Sri Lanka needs to make to the Asian Clearing Union.