Journalism of Courage
DAYS AFTER Delhi gave “financing assurances” to clear the way for Colombo’s bailout package from the International Monetary Fund (IMF), External Affairs Minister S Jaishankar said on Friday that India will “encourage greater investments in the Sri Lankan economy”.
The debt-ridden country is in talks with the IMF to secure a US$ 2.9 billion bridge loan. For that, it is negotiating to get financial assurances from its major creditors — China, Japan and India – which is the requisite for Colombo to get the bailout package.
“India decided not to wait on others, but to do what we believe is right. We extended financing assurances to the IMF to clear the way for Sri Lanka to move forward… Our expectation is that this will not only strengthen Sri Lanka’s position but ensure that all bilateral creditors are dealt with equally,” said Jaishankar, who is on a two-day visit to the neighbouring country.
“India will encourage greater investments in the Sri Lankan economy, especially in core areas like energy, tourism, and infrastructure. We count on the government of Sri Lanka to provide a more business-friendly environment to create a powerful pull factor,” he said in a press statement. “Sri Lanka’s pathway is one of a strong economic recovery propelled by greater investments,” he said.
Besides meeting Sri Lankan President Ranil Wickremesinghe, Prime Minister Dinesh Gunawardena and Foreign Minister Ali Sabry, Jaishankar also met former President Mahinda Rajapaksa and his brother Gotabaya Rajapaksa, and Opposition leader Sajith Premadasa.
“My primary purpose to visit Colombo is to express India’s solidarity with Sri Lanka during these difficult moments,” he said. “We’ve had a very good discussion that follows up on my meetings with my counterpart and other Sri Lankan ministers yesterday (Thursday) evening,” he said.
India has extended about US$ 4 billion in terms of credits and rollovers to help Sri Lanka get through its economic crisis. “For us, it was an issue of the neighbourhood first and not leaving a partner to fend for themselves,” Jaishankar said. An MoU was finalised on Indian assistance for the implementation of high-impact community development projects, which mainly focus on socio-economic development, infrastructure and education.
