Sri Lanka seeks contemporary foreign money swap facility, deferment of debt funds from India

MUMBAI: Sri Lankan Prime Minister Mahinda Rajapaksa sought an extra foreign money swap facility and deferment of debt funds from India throughout a web-based bilateral summit with Prime Minister Narendra Modi on Saturday, Indian officers stated.
Sri Lanka owes about $960 million to India and earlier this 12 months India agreed to a $400 million foreign money swap facility for Sri Lanka till November 2022.
“A further request for a bilateral foreign money swap association price round $1 billion by the Sri Lankan facet stays below dialogue,” the international ministry stated in an announcement.
Modi informed his Sri Lankan counterpart that below the nation’s “Neighbourhood First” coverage, India will proceed to “give particular precedence to relations between the 2 nations”, stated the officers.
Sri Lanka, situated off the southern tip of India, has turn into an area of competing affect between India and China, which has constructed ports, energy stations and highways as a part of President Xi Jinping’s signature “Belt and Highway Initiative”, designed to spice up commerce and transport hyperlinks throughout Asia.
However the phrases of a few of these initiatives have drawn home criticism in Sri Lanka and opened the best way for nations akin to India, the USA and Japan to rebuild ties within the Indian Ocean nation that lies close to key delivery lanes.
Rajapaksa, who received a basic election final 12 months after promising to drag the nation out of its deepest financial hunch, has to service mounting exterior debt amidst the coronavirus pandemic.
He informed Modi that the Sri Lankan authorities’s insurance policies will facilitate deeper financial and strategic cooperation between the 2 nations.

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