India likely to agree to PM’s request

By Kelum Bandara
India is likely to respond positively to the request by Prime Minister Mahinda Rajapaksa to grant a moratorium for the repayment of loans obtained, Daily Mirror learns.  

The Prime Minister made this request during his bilateral talks with Indian Prime Minister Narendra Modi in New 
Delhi last week.   

The Indian government can respond to it after obtaining Cabinet approval only. Sri Lanka’s outstanding loan component from India including interest is US$ 962 million. Debt service payment due for this year with interest is US$ 169.7 million.  

Sri Lanka will have to settle US$ 182 million in 2021 and US$ 168 million in 2022.   

Sri Lanka has made the largest burrowing of US$ 5.2 billion from China. Payment scheduled for this year is US$ 674.4 million.   

India has offered Sri Lanka US$ 400 million Line of Credit.