India backs Sri Lanka to secure IMF bailout plan amid crisis

20 January 2023
2023-01-20 19:48

Indian foreign minister said on Friday his country has given financial assurances to the International Monetary Fund to facilitate a bailout plan to help neighbouring Sri Lanka emerge from its worst economic crisis. He said “India decided not to wait on others but to do what we believe is right.

We extended financing assurances to the IMF to clear the way for Sri Lanka to move forward,” he said. Sri Lanka has a total foreign debt of $51 billion and it must pay back $28 billion by 2027. India's official credit to Sri Lanka is $4.4 billion excluding other forms of lending.

Among Sri Lanka's leading creditors are Japan and China. Sri Lanka and the IMF have reached a preliminary agreement on a $2.9 billion bailout plan over four years, but final approval depends on assurances given by creditors on the debt restructuring.

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