India says will continue to support Sri Lanka

Thursday, 27 June 2024 02:04 - - {{hitsCtrl.values.hits}}

India said yesterday it will continue to support Sri Lanka’s economic recovery including by promoting long-term investments in its key economic sectors.

The announcement follows the Memorandum of Understanding (MoU) on debt restructuring between Official Creditors Committee and the Government of Sri Lanka.

In a statement, India said as one of the co-chairs of the OCC, along with France and Japan, India has been steadfast in its commitment to the stabilisation, recovery and growth of the Sri Lankan economy. “This was also demonstrated by India’s unprecedented financial support of $ 4 billion to Sri Lanka. India was also the first creditor nation to convey financing assurances to IMF which paved the way for Sri Lanka to secure the IMF program,” the statement said.

Following the approval by the IMF for the Extended Fund Facility (EFF Programme) for Sri Lanka on 20 March 2023, the Official Creditors Committee (OCC) was launched on 13 April 2023 to hold talks among Sri Lanka’s bilateral creditors to finalise a plan for restructuring Sri Lanka’s debt.

After several rounds of engagements, the OCC signed the MoU on debt restructuring on 26 June 2024. This milestone demonstrates the strong progress made by Sri Lanka in stabilising its economy and moving towards reform and growth.