India plans to stop financial aid to Sri Lanka after IMF bailout: Report

15 September 2022 04:47 pm - 29 - {{hitsCtrl.values.hits}}

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India does not plan to provide fresh financial support to Sri Lanka on top of the nearly $4 billion it has extended this year, two sources told Reuters, as the island's battered economy starts to stabilise after a preliminary loan agreement with the IMF.

India has been the biggest provider of aid this year to its southern neighbour, which is fighting its worst economic crisis in more than seven decades and struggling to pay for imports, although the situation now is less severe than it was between May and July.

"We have already given $3.8 billion worth of assistance. Now it's all about the IMF," an Indian government source with direct knowledge of discussions with Sri Lanka told Reuters. "Countries can't keep giving assistance."

A Sri Lankan government source said India's decision was not a surprise and that New Delhi had "signalled" to them a few months ago that there would be little further large-scale support forthcoming.

The source, however, said that India would be invited to a donor conference that Sri Lanka was planning to hold with Japan, China and possibly, South Korea, later this year.

Another Sri Lankan government source said that talks between India and Sri Lanka for a $1 billion swap arrangement and its request for a second $500 million credit line to purchase fuel, made in May, had made little headway.

The sources declined to be named, since they were not authorised to speak to media.

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Comments - 29

tilak Thursday, 15 September 2022 05:46 PM

way to go. One cannot keep on borrowing and run a country. That is suicidal. Need to curtail expenditure and increase revenue. Thieves who stole will never return the loot, no matter how much the Aragala cries foul. Infact there are beneficiaries waiting to vote them back to power

Lanka Thursday, 15 September 2022 06:25 PM

India is not a charity to pay for all loans that Sri Lanka has borrowed without any common sense. India has been helping Sri Lanka and how long it can keep doing it? India with its 1.2 billion population has relatively more problems than us. How many per cent of Indians do not have basic needs such as housing, schooling, and even someplace basic sanitary facilities? India is not for sale as some think to milk it as and when other countries need it. Sri Lanka utterly failed to develop balanced geopolitical relations with its neighbours:

Lankan for unity Thursday, 15 September 2022 07:46 PM

I wonder if their indifference towards us is to do with us lauding the deceased British Monarch so much. They didn't get so meaninglessly emotional about it. Or if India is showing their internal political interests again mean they will swat us down when we continue to need their financial support. If India is not showing any support for us, we must ourselves become indifferent to them.India is too useless to invade us, because they will suffer too much causality. They have better chance fighting the China in the ice lands than invading and holding our land for any length of time. In business we should stop giving them better treatment than persons of any other country. Ranil's recent re-doing circulars for Indian business interest here has got us nothing. Put a freeze for giving Indian business any further benefit (over others).

Jaffna Tamil, Private Investigator, Canada Thursday, 15 September 2022 07:59 PM

Show the middle finger to the Indians. No Hindu Tamil or Buddhist Sinhalese want any more “help” from inherently characterless Indians. They are a permanent threat to our country. Daily Mirror should play it’s own part to stop the saturated anti Sri Lankan comments from the Indian paid Christian Tamil operatives.

Parakrama Thursday, 15 September 2022 10:30 PM

Thanks to the people of India for the much support at the crucial time. We also now need to get on our feet. But please push our government to reduce the size of the huge set of state ministers and some of the cabinet.

Punchi Friday, 16 September 2022 08:53 AM

If India closes its tap, Palitha Kohona will get China to open its tap for us or is it who needs Indian money when we can get Chinese money. But Chinese money never comes

Ding Dong Pitchamoney Friday, 16 September 2022 09:27 AM

At this instance, Ranil will sell more of our assets to India pacifying them.

Nimal Friday, 16 September 2022 12:22 PM

What has happened for 74 years by keeping these "assets" with incompetent SL? Are they flourishing? Shouldn't British have stayed back in SL? If they had done, SL would have been a well developed country by now.

Aranpala Ganemulla Friday, 16 September 2022 10:10 AM

Please help Satan son ponnaya to survive with MaRa death.

Dee Friday, 16 September 2022 09:23 PM

Are you on weed left over from GGG aragaley ground?

Kumara Friday, 16 September 2022 11:09 AM

Looking at some delusional comments here, it seems that the beggar wishes to be a choser! Not a terrible brilliant idea when there is only one benefactor who is willing to even look at the Sri Lankan begging bowl.

Brainless President Friday, 16 September 2022 01:21 PM

When India sees what's going on in SriLanka,they would regret having given whatever aid they offered up to now. When there is a large segment of the Sri Lankan population who are struggling to have one meal a day, 38 appointments of State Ministers and more Cabinet Ministers are being made.These appointees are not with any special skills or education who could contribute to run the country but mere crooks and cronies who will use up the assistance and aid friendly countries give us on sympathetic grounds.

Tony Friday, 16 September 2022 01:53 PM

Its time India realized - a country where there is no accountability , no control on corruption, and not sincere there is no room for continued support. Its time the President addressees these on priority if the country is to stabilize and move forward.

Sinna Friday, 16 September 2022 02:39 PM

Why India take the pain, when Chinese misguiding stupid Sri Lankan politicians, who are blinded by greed, pawning own citizens to China and run away in safe haven in USA,why India worrying of Sri Lankans,let them settle this with their good friends in China

Tiamaria Friday, 16 September 2022 03:27 PM

Better not help this ungrateful country. Once the donated food pass the throat ,they forget and always blame !

Fathima Lai Friday, 16 September 2022 03:55 PM

But it will impact Indian export too, because the Indian loan agreement is that SL uses a good portion of the Indian loan to buy Indian products.

sam Friday, 16 September 2022 04:40 PM

It will take some years before aid can be stopped

Somaratne Friday, 16 September 2022 08:17 PM

After India stops, MR Inc can start funding the country.

SL Friday, 16 September 2022 08:38 PM

Time for Lanka to pay back all its debt. why borrow more from India when Sri Lanka works in the interest of China. Wasting for Indian tax payers money. Sri Lanks should pay back all its debt from India.

Nihal S Friday, 16 September 2022 11:15 PM

Effectively India is paying Chinese loans to Sri Lanka. Thank you India.

Thiruvengadam Ramakrishna Saturday, 17 September 2022 02:39 AM

India is Asia’s third largest and world’s fifth largest economy. Strategically, she is adequately prepared. Among other things, she is also the founder-member of “Quad”, which China calls “Asia’s NATO”! Sri Lankans can rest assured that India’s interest in SL is purely neighborly! Not for money or military help! Should SL slip again into another calamity and alone, India wouldn’t mind a few $Billions!

Nandasena R Saturday, 17 September 2022 03:22 AM

India should stop helping right now. This will put the "cat among the pigeons". Let us then see what RR will do to feed the millions? He then will have to go on AWOL like his predecessor and bosom pal GR.

Cam Sam Saturday, 17 September 2022 05:42 AM

SL leaders have proven that they are friends of India only until they get some favor. Inherently, not a single Sinhalese is a well wisher of India. If China attacks India, almost all the Sinhalese will be happy. This is the fact. This is something the Indian people should keep in mind.

Namal Saturday, 17 September 2022 05:54 AM

The Rajapakshe's wasted the Indian credit line too. Kaputa as the finance minister, Myna as the prime minister, go-home as the president and Cabral spent that money on importing oil, food etc. Sri Lanka is getting the same amount as from the Indian credit line over a four year period from IMF. We could have saved at least 1.5 Billon on foreign reserves,if that funds were managed well. What a shame, vote these cattle again please.

Russel Harmmer Saturday, 17 September 2022 08:13 AM

India also has a grudge on Sri Lanka as our brave boys beat them easily in the Asian Cup.

Prof. K. Somasunderam Saturday, 17 September 2022 08:15 AM

It's a great loss for SriLanka, well we should not kick the ladder getting the maximum help from India allowing the Chinese ship to spy at Hambantota.

Dr. D.J. Munasinghe Saturday, 17 September 2022 08:17 AM

While looking at the history, India also have helped us almost similar to China. Only alternative is Ranil should go and beg Indian Prime Minister to forgive and forget.

Punchi Saturday, 17 September 2022 10:46 AM

Pakistan PM Sharif is reported to have said that when Pakistan government phones overseas, the people think that they are calling to beg for money. Also for 75 years Pakistan has depended on aids and grants. The same applies to our failed beggar paradise

Ungrateful Sri Lanks Thursday, 22 September 2022 10:41 PM

As always, Sinhalese people only wants Indian tax payers money but they don't care for India's security. India has no political or business interests in SL, but SL always proved to be an ungrateful neighbour. The comments here proves that argument. Your politicians are reflection of your people, no wonder they are corrupt.

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India plans to stop financial aid to Sri Lanka after IMF bailout: Report

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