India commits to help Sri Lanka on debt in prospective IMF program

 

India has committed to help ease the debt burden of its crisis-stricken neighbor Sri Lanka as part of a possible International Monetary Fund-supported program, the IMF said on Monday.

The island nation of 22 million people has grappled with challenges during the past year ranging from a shortage of foreign currency to runaway inflation and a steep recession - the worst such crisis since independence from Britain in 1948.

Reuters reported last week that India had told the IMF it strongly supports Sri Lanka’s debt restructuring plan as the island seeks a $2.9 billion loan from the global lender, according to a letter.