New Delhi, which has helped Sri Lanka fight its economic crisis, is worried over Saturday’s events in the close neighbouring state, ET has learnt. It is monitoring political developments in the island nation including formation of a new government and is in touch with key political players as stability in Colombo is paramount for stability in the Indian Ocean Region.
India is also keeping a close watch on any further downslide in the Lankan economy that might trigger a humanitarian crisis including any movement of citizens in southern Indian states. New Delhi is also keeping a close watch on its projects in the island nation.
“India can ill afford Lanka plunging into a chaos and bigger turmoil,” a source pointed out.
India’s assistance to Lanka in 2022 stands at more than $3.5 billion. It has extended three credit lines totalling more than $ 1.5 billion and forex support of around $2 billion. India has plans to send additional consignments of fuel to Colombo this month.
Also, the development assistance extended by India stands at over $5 billion with more than $600 million being in grants.
Earlier this week, Wickremesinghe had announced that Colombo was planning to host an international donors conference involving three major Asian economies – India, China and Japan – to help revive the sagging economy.
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