scorecardresearch
India surpasses China to become Sri Lanka's top lender

India surpasses China to become Sri Lanka's top lender

India became Sri Lanka's largest bilateral lender in the first four months of 2022, surpassing China with loans totalling USD 968 million.

advertisement
India surpasses China to become Sri Lanka's top lender India surpasses China to become Sri Lanka's top lender

India became Sri Lanka's largest bilateral lender in the first four months of 2022, surpassing China with loans totalling USD 968 million.

Notably, China has been Sri Lanka's top bilateral lender over the past five years, from 2017 to 2021, disbursing USD 947 million, of which USD 809 million came via market borrowings from the China Development Bank.

It claimed that the Asian Development Bank (ADB), which disbursed funding totaling USD 610 million in 2021, was the largest multilateral lender over the previous five years.

India has disbursed USD 377 million and ADB has disbursed USD 360 million, which account for 76 per cent of the total disbursements in the first four months of 2022.

Meanwhile, at a UNGA Annual Joint Debate on the Reports of Peacebuilding Commission (PBC) and Peacebuilding Fund (PBF), India’s Permanent Representative to the UN, Ruchira Kamboj said that India had provided nearly USD 4 billion in food and financial assistance to Sri Lanka.

“In our immediate neighbourhood, we are continuing to help our good friend and neighbour Sri Lanka to ensure food security by providing nearly USD 4 billion in food and financial assistance during the past few months,” Kamboj said.

India delivered 21,000 tonnes of fertiliser to its neighbour and country in crisis, Sri Lanka, on August 22.

"Spicing up the aroma of cooperation and friendship. According to a tweet from the Indian High Commission in Colombo, Sri Lanka, "High Commissioner officially handed over 21,000 tonnes of fertiliser supplied under India's special help to the people of Sri Lanka."

“This follows 44,000 tonnes supplied last month under Indian support totalling about USD 4 billion in 2022. The fertilizer will contribute to food security and support the farmers of Sri Lanka. It demonstrates benefits to the people from close ties with #India and mutual trust and goodwill between #India and #Sri Lanka,” added the High Commission of India.

India has been at the forefront of providing Sri Lanka with economic aid in accordance with their needs and is one of the nations that has given the most aid during a time of need.

Sri Lanka has been going through a worsening economic crisis since the start of 2022, and the government has stopped paying back its international creditors.

Numerous Sri Lankans are suffering from food and fuel shortages as a result of the country's severe economic crisis. Since the COVID-19 pandemic began, the economy has been in a free fall.

Sri Lanka is also facing a foreign exchange shortage, which has, incidentally, affected its capacity to import food and fuel, leading to power cuts in the country. The shortage of essential goods forced Sri Lanka to seek assistance from friendly countries.