Mahinda seeks 3-year debt moratorium from India

India’s Prime Minister Narendra Modi (R) and  Sri  Lanka’s Prime Minister Mahinda Rajapaksa shake hands during a joint media briefing at the Hyderabad House in New Delhi on February 8 (AFP Photo)

• Requests India to support revival economic activities in SL
• Says if India gives a moratorium, SL could convince other lenders to follow suit
• Stresses SL will not default loans “no matter what happens”

Prime Minister Mahinda Rajapaksa has sought a three-year a debt moratorium from the Indian government so that the heavily indebted island nation could convince other lenders to follow suit.

Rajapaksa said this during an interview with The Hindu’s Suhasini Haider in New Delhi.

When Haider queried about the country’s domestic and foreign debt totaling to about US$ 60 billion, Rajapaksa admitted that the issue had surfaced during his talks with the Indian government and he had asked for a moratorium on all loan payments until the economy is revived.

“This is something we discussed with the Indian government as well, and have asked if we could get a moratorium on all loan repayments for three years, until we revive the economy. 
“If the Indian government takes this step, then other governments might agree to do the same thing, including China. The previous government took so many loans, they beggared the economy, and it is a mess. It all depends on the stand India takes,” Rajapaksa said.

He also stressed that Sri Lanka would not default its debt obligations “no matter what happens.”

PM Rajapaksa also said the government of President Gotabaya Rajapaksa would not implement the 2017 MoU with India on projects inked by the previous Sirisena-Wickremesinghe government and national assets such as the airport in Mattala would not be given away to any country.

Rajapaksa is currently on an official visit to India on the invitation of Indian Premier Narendra Modi. He is due to return to Colombo today.