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India says further relief impossible without SL having an agreement with IMF

5 February 2021 06:00 pm - 29     - {{hitsCtrl.values.hits}}


In response to internet media reports about India asking for the settlement of US $ 400 million currency swap as an act of retaliation for the cancellation of the port project, the Indian High Commission said a rollover facility for the settlement of had been granted for the Central Bank of Sri Lanka till February 1, and further extension was impossible without Sri Lanka having successfully negotiated staff level agreement for an IMF programme.

 A spokesman of the Indian High Commission who commented on such media reports said, “We have seen speculative reports about the US$ 400 million settlement of currency swap facility by Central Bank of Sri Lanka (CBSL). In this respect, it is pointed out that Reserve Bank of India (RBI) and CBSL had concluded a US$ 400 million currency swap agreement on July 24, 2020 under the SAARC Currency Swap Framework. This swap facility was drawn by CBSL on July 31, 2020 for an initial period of three months,”

He said a three -month rollover was provided at CBSL’s request till February 1, 2021, and further extension would require Sri Lanka having a successfully negotiated staff level agreement for an IMF programme.

“Sri Lanka does not have at present. The Central Bank settled the swap facility with the Reserve Bank of India as scheduled and this was clarified by the Central Bank on February 5, 2021,” he said.

He also said India abides by all of its international and bilateral commitments in letter and spirit.

Bilateral relations with India hit a new low recently after the government reneged from a committee made in 2019 under the previous rule to develop the East Container Terminal of Colombo Port through an equity sharing arrangement . India conveyed its displeasure on this issue formally the Sri Lankan leaders last Tuesday.  (Kelum Bandara)

  Comments - 29

  • Sam Silva Friday, 05 February 2021 06:17 PM

    We need to cut our expenses drastically. We have jumbo cabinet and keep on adding more appointees, unnecessary new developments and printing money.

    Rajiv Friday, 05 February 2021 06:18 PM

    What a shame! We have become so dependent on foreign loans, thanks to mismanagement. I suppose the Chinese are waiting, licking their chops!!

    friendfriend Friday, 05 February 2021 06:28 PM

    Millions wasted celebrating independence. new uniforms for retired military. wasting money on expressways. people of Sri lanka need to wakeup.

    Kandy Budhist Friday, 05 February 2021 06:47 PM

    INDIAN GIFT. Only China is our Friend.

    Dr Hashem Friday, 05 February 2021 06:57 PM

    Can't blame India. Its there hard earned money not like Sri Lanka we don't have any savings for Rainy days. We are living in a luxury and fantacy land.

    Gummapana Saturday, 06 February 2021 12:26 PM

    Yes I too with you , Srilanka future is known .No proper plan just straggling keep the power.Un necessary expenditure No forgien resources.Nothing Only we have only Useless 225 and 69 Lak slave voters.

    Mokan Friday, 05 February 2021 06:58 PM

    Are we going bankrupt

    Saranga W Friday, 05 February 2021 07:18 PM

    More to come US halts imports we will starve

    vithura Friday, 05 February 2021 07:54 PM

    This is called the ECT vaccine for those who goad India!

    Bernard Friday, 05 February 2021 07:57 PM

    Anyway the government is forced to go after the IMF for an international loan due to recent developments in engaging wih the international community.

    Buddhist Friday, 05 February 2021 08:41 PM

    First screw tightened, wait for few more. Result of braking international MOC.

    Kathir Friday, 05 February 2021 08:51 PM

    This type of Indian ugly retaliation can not be accepted not only By Sri Lanka but also other small poor countries. India proposed with goodwill This loan and Sri Lanka accepted China will help Sri Lanka to settle this poor 400 millions.nomore blackmail Modi.

    Joshua Friday, 05 February 2021 09:03 PM

    This is what happens when the politicians act with big swollen heads. Further, without IMF we are sitting ducks. Wimal any idea?

    Priya Ratawatte. Friday, 05 February 2021 09:05 PM

    We are a small country with much better history than India which was only freed in 1947 after being under full occupation by foreign countries for nearly 1500 years ,Punjab and Kashmir by the Greeks, then whole of North by the Muslims, and finally by Britain. I hope this time the Chinese would invade and take control of this third rate bully, neutralise all its imported weapons, build toilets , and keep it under “ lock down “ for another thousand years.

    dragon Friday, 05 February 2021 09:36 PM

    Borrow 400M from China and deliver it to India with a raised middle finger!

    Demuni Uduwara Friday, 05 February 2021 09:50 PM

    More and more repercussions are "entitled" to follow.

    roni Friday, 05 February 2021 10:00 PM

    Get Cabba to authorize to authorize the printing of new notes, an increase the rate of promotions in state sector, it will help the cause

    Dee Friday, 05 February 2021 10:03 PM

    Can we wake up that economic 'osthar' from the grave?

    saman Friday, 05 February 2021 10:10 PM

    we should be careful not to play China vs India game. that will drag us into a proxy war between superpowers

    Felix Saturday, 06 February 2021 10:27 AM

    Have we forgotten that INDIA is our immediate neighbor and that CHINA is INDIA'S arch rival? Bringing INDIA'S arch rival to its southern door step is something that we Sri Lankan's should very seriously think about! Both are Nuclear super powers!!

    dara Saturday, 06 February 2021 10:56 AM

    India seems want us push toward IMF,to feel the taste of their unending conditions,which is not easy to fulfil,anyway our politicians are rich,misusing public money

    Prof Jey R Saturday, 06 February 2021 12:30 PM

    China will Give.. loan bribe.. Then China will Take.. Everything.. Including your freedom and destroy all religious and cultural.. that is what they do.. go and check the history of North Korea, Ruwanda, Myanmar.. ext..

    brainmaster Saturday, 06 February 2021 12:40 PM

    wait, some more to come, and not only from India. China might help, but at what price......

    Jehan Saturday, 06 February 2021 12:45 PM

    We are separated by 20km from India, nearly 20% of our population have Indian relations. We do not have this kind of relationship with China. Nandasena should not make the same mistake JR did. History should not repeat itself.

    Jaffna Logic Saturday, 06 February 2021 05:53 PM

    Sri Lanka is for Sri Lankans who are decedents of Sri Lankans for at least two thousand years. These Indian Estate Tamils living in our country and having loyalty to India is not acceptable. They all should go back to India.

    Idiots posing as Professors. Saturday, 06 February 2021 05:59 PM

    Prof Jey R, if you are a real professor then the oxygen we breathe comes from rat’s arse.

    Jesus Sunday, 07 February 2021 09:51 AM

    I am sure your are an Buddhist who goes to pansal on Sundays . And a petty minded communal racist..

    Sach Saturday, 06 February 2021 06:16 PM

    Lets go with China

    E Fernando Sunday, 07 February 2021 03:46 PM

    with all our natural and human resources and geographic location we should have been a stronger nation instead we are dependent on everyone and now in danger of losing our sovereignty. Thanks to all the kalakanni leaders and ministers.

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