India adjusts $15Mn grant to INR for Buddhist ties amid currency depreciation

4 November 2023 12:00 am Views - 102

 

By Kelum Bandara

The US $ 15 million grant committed by India in 2020 for  the promotion of Buddhist ties between the two countries has been  recalibrated to Indian rupees (INR) to suit the latest market  developments, Daily Mirror learns 

 The bilateral documents were exchanged in the presence of President Ranil Wickremesinghe and Finance Minister of India Nirmala  Sitharaman who was in Sri Lanka.  


The grant was announced in 2020 in US dollar terms, but the value of Sri Lankan currency has depreciated drastically since then.  
“The total value of the grant in terms of Sri Lankan rupee  terms is much less today because of the currency depreciation. There  are other changes in market conditions since then. Therefore, the grant  was recalibrated to INR,” a source said.   


Besides, during the visit, the MoU on solar electrification  of places of religious worship across Sri Lanka with a grant allocation  of USD 10 million was also exchanged.  


Meanwhile, the Indian Minister, in his speech at the  Public Commemorative Event for the 200th Anniversary of Arrival of Indian  Origin Tamils in Sri Lanka, said India rendered unprecedented  financial assistance of over US $ 4 billion for the people of Sri Lanka. 

  
“We were the first bilateral creditor to convey financing  assurance to the International Monetary Fund, which paved the way for  others to provide similar assurances that formalised the IMF programme for  Sri Lanka. As a true friend, India continues to work  closely with the Government of Sri Lanka on debt restructuring  discussions as well as on its path to economic recovery. 


Our  leaders have released a vision document for economic partnership in July  this year outlining specific areas of cooperation for sustainable  economic development and prosperity for our people,” he said.