India starts debt-restructuring talks with Sri Lanka

 

India said on Tuesday it had begun talks with Sri Lanka on restructuring its debt and promised to support the crisis-hit neighbour mainly through long-term investments after providing nearly $4 billion of financial aid. 

Sri Lanka, a tourism-dependent South Asian country of 22 million, is struggling with its worst economic crisis in more than seven decades, which has led to shortages of essentials and the ouster of a president. 

The High Commission of India in Colombo said it held the first round of debt talks with Sri Lankan officials on Sept. Sri Lanka will make a presentation to its international creditors on Friday, laying out the full extent of its economic troubles and plans for a debt restructuring. 

The High Commission said India had ongoing development projects worth about $3.5 billion in Sri Lanka, whose president earlier this month asked his officials to resolve obstacles to projects backed by India.