India holds talks with SL on debt moratorium

India’s Finance Ministry and Export Import Bank officials have held online talks with Sri Lanka’s Finance Ministry on structuring a debt moratorium for the country, the Delhi’s High Commission in 
Colombo said.

“The Indian delegation comprising of senior officials from the Ministry of External Affairs, Ministry of Finance, and the EXIM Bank interacted with representatives from the Department of External Resources of Sri Lanka through a video conference,” a statement said.

“The constructive discussion between both sides took place in a cordial and positive atmosphere.” By December 2019 Sri Lanka had Rs.153 billion of loans (approx. US$ 840 million) from India. 

Repayments in 2019 were at Rs.16.7 billion (about US$ 77 million).

Sri Lanka’s President Gotabaya Rajapaksa and Prime Minister Mahida Rajapaksa had asked for India’s support on 
the matter.

Another round of technical discussion will be held, the High Commission said.

India has been assisting Sri Lanka through credit lines mainly directed at the railways sector.