India prepares economic aid package for Sri Lanka

India is working out a package on an urgent basis to assist Sri Lanka, following Sri Lanka Finance Minister Basil Rajapaksa’s New Delhi visit that focussed on measures to tide over an economic crisis that the island nation is facing, The Economic Times reported.

 

Quoting officials, The Economic Times said India is expected to extend a food and health security package to Sri Lanka on an urgent basis, along with an energy security package and currency swap, and also push Indian investments.

 

The food and health security package would envisage the extension of a line of credit to cover the import of food, medicines and other essential items from India.

 

Meanwhile, the energy package would also comprise a line of credit to cover import of fuel from India, and an early modernisation of Trincomalee Oil Tank Farm.

 

Finance Minister Rajapaksa has briefed the Indian side of the economic situation in Sri Lanka and his government’s approach to addressing post-COVID challenges.