India to give debt moratorium for Sri Lanka?

By Kelum Bandara  

India is currently in discussion with the Sri Lankan authorities to grant a debt moratorium for Sri Lanka as requested by Prime Minister Mahinda Rajapaksa, the Daily Mirror learns.  

The Prime Minister made this request from Indian Prime Minister Narendra Modi during his official visit to New Delhi in February this year.  
Sri Lanka’s total outstanding loan component from India is US $ 962 million. This includes the interest accrued.  

The payment due for this year with interest is US$169. 7 million.  The Sri Lankan government made this request as part of its plan for debt restructuring.  
Meanwhile , the agreement for the currency SWAP faculty of US$ 1. 1 billion will he signed between the Reserve Bank of India and the Central Bank of Sri Lanka next week.