Sri Lanka crisis: India, IMF consider $2 billion aid; PM says made make not attending meeting on Rambukkana violence

As Sri Lanka continues to grapple with its worst-ever economic crisis, several neighbouring countries, including India and China, have said they will extend support to the island nation to help it continue essential imports. The World Bank and International Monetary Fund (IMF) are also set to provide relief packages to tide over the crisis.
Sri Lanka’s Finance Miner Ali Sabry on Saturday announced that India and the World Bank are considering extending about $2 billion in bridge finance to the island nation, which has been struggling to pay for the import of essential items, including medicine and fuel. In a bid to secure funds, Sri Lanka has been reaching out to several creditors to restructure its debt and also approached China and Japan for help, Reuters reported.
Meanwhile, the World Bank is extending $300 million to $600 million over the next four months so that the country can secure medicine and other essential items, Sabry said. Sabry, who is still negotiating a rescue package with the IMF, said while talks with the international lender might take some time, the World Bank has agreed to provide support in the meantime, AP reported.
On Friday, Sri Lankan PM Mahinda Rajapaksa said that China had agreed to support his government after a “very productive” conversation with his Chinese counterpart Li Keqiang, PTI reported. “Had a very productive conversation with Chinese Premier Li Keqiang. I reiterated #SriLanka’s gratitude to #China for the longstanding friendship and for assuring support to address some of the crucial needs affecting peoples’ livelihoods and well-being in these difficult times,” Rajapaksa tweeted.
On the brink of total bankruptcy, Sri Lanka has to pay nearly $7 billion of its total $25 billion in foreign debt this year. Due to the severe shortage of foreign exchange, the country hasn’t been able to buy imported goods.
As Sri Lanka sinks deeper into the crisis, the country’s otherwise thriving tourism industry has also been hit. While tourism hit a two-year high in March, with 100,000 arrivals, restaurant and hotel owners fear that the ongoing economic crisis will prevent a more robust revival in the near future, according to a Reuters report.
Thousands of ordinary Sri Lankans have taken to the streets to protest against power cuts and essential food shortages. One such demonstration in Rambukkana left one protestor dead and 13 injured earlier this week after police officials opened fire to suppress the protests. Embattled Prime Miner Mahinda Rajapaksa admitted on Friday that he made a make not attending a National Security Council’s meeting over the incident.

“I was invited. But I did not attend. It’s my fault. But I was briefed on the progress that evening,” the Prime Miner told Parliament. The Sri Lankan police transferred three top officers for their alleged misconduct in Rambukkana, PTI reported.
Several have also chosen to flee the country. In fact, 18 more Sri Lankan nationals who fled the crisis-hit island republic arrived in India on Friday, with the hapless families who landed at Dhanushkodi in the wee hours being accommodated at the Mandapam refugees camp.
(With agency inputs)