India and Sri Lanka have seen rise in their bilateral relation. India has played a very major role during Sri Lanka’s time of crisis. India has economical, social and political ties with Sri Lanka and even when Sri Lanka was going through crisis, India came forward to provide them help.
History of India and Sri Lanka ties:
Even during civil war in May 2009, India stood with Sri Lanka and Tamil and Muslim minorities in Sri Lanka have usually looked up to India as and whenever they faced any problem. From October 18 to 20, 2018, Sri Lanka’s Prime Minister Ranil Wickremesinghe visited India on government business. Sri Lanka has always been prioritised for direct investment. The main items of exports from Sri Lanka to India are: Base Oil, Poultry feeds, Areca nuts, (waste and scrap) paper or paperboard, Pepper, Ignition Wiring Sets, Copper wire, Marble, travertine and alabaster.
Main items of Imports from India to Sri Lanka are: Gas oil/ Diesel, Motorcycles, Pharmaceutical
Products, Portland cement, Semi finished products, of Iron, Military weapon, Fuel oil, Rice, Cement , clinkers, Kerosene Type jet Fuel. People of Sri Lanka share close cultural and ethical relation with South India. India has offered about $3.5 billion in credit and currency exchange. It has recently sent much needed fuel, food, and fertilisers to Sri Lanka in order to help them out.
The Sri Lankan government has provided a Letter of Intent (LOI) for the construction and operation of the West Container Terminal (WCT) in Colombo to Adani Ports and Special Economic Zones Ltd (APSEZ). A public-private collaboration will be used to build, operate, and transfer the WCT over the course of 35 years.
Sri Lanka is one of the main benefactors of humanitarian assistance from the Indian government.
The total amount pledged by India is close to US$ 3 billion, of which US$ 560 million is made up entirely of grants.
India has played a very major role during this time of crisis. India has economical, social and political ties with Sri Lanka.
1) Sri Lanka’s crisis:
The state crisis in Sri Lanka, which started on April 21, 2019, as a result of numerous compounding events, has presented the greatest challenge to the public and the government. People are protesting against it due to the country’s high inflation and unstable condition. Sri Lankans have fallen into poverty by a minimum of 500,000 in the last few months.
According to doctors, there are high chances of people dying due to the crisis as compared to the Covid. There is no fuel, no medicines, and critical surgeries are being cancelled. The nation is experiencing its biggest economic crisis since its independence in 1948. Sri Lanka declared its first state of emergency on April 1, 2022, and President Gotabaya Rajapaksha declared another emergency on Friday as the country faces a crisis. Sri Lanka is currently facing an acute food shortage and electricity shortages, people are unable to afford the basic amenities. People are demanding the resignation of Prime Minister Mahinda Rajapaksha and the President Gotabaya Rajapakshya.
2) How’s India helping Sri Lanka to get out of the crisis?
Sri Lanka needs a lot of money to prevent its economy from collapsing, but even if they are able to borrow it, they won’t be able to repay it any time soon. India is providing crucial economic support to the Island nation. Recently, a girl from Tamil Nadu named Ramanatha has donated a piggy bank savings of Rs 4,400 to Sri lanka, she handed over her savings to district collector Shankar Lal Kumawad. People should come forward to help the Island nation. Sri Lanka is forced to borrow money from other nations and international financial institutions.
The G7 nations, which include Canada, France, Germany, Italy, Japan, the UK, and the US, have stated they support Sri Lanka’s efforts to decrease debt repayment responsibilities. India has contributed at least $1.9 billion, and the World Bank has agreed to provide Sri Lanka $600 million. Additionally, the International Monetary Fund (IMF) is considering a potential $3 billion (£2.5 billion) loan.
Any recovery arrangement is likely to be released anytime soon until a new powerful administration is in place since it would require a stable government to be in place in order to boost taxes and interest rates to help finance the deal.
The Sri Lankan government has provided a Letter of Intent (LOI) for the construction and operation of the West Container Terminal (WCT) in Colombo to Adani Ports and Special Economic Zones Ltd (APSEZ).
A public-private collaboration will be used to build, operate, and transfer the WCT over the course of 35 years.
Sri Lanka is one of the main benefactors of humanitarian assistance from the Indian government.
The total amount pledged by India is close to US$ 3 billion, of which US$ 560 million is made up entirely of grants.
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