Sri Lanka is in the middle of a deepening financial crisis. With essential resources depleting and inflation rising, the island nation is in a state of economic distress. To prevent Sri Lanka from falling into an economic tailspin, India has offered a financial package.
India has announced a package of $900 million to help Sri Lanka to build its foreign reserves and for its food imports. Along with this, India extended a currency swap facility of $400 million. Additionally, it deferred the payment of $515.2 million to the Asian Clearing Union (ACU) by two months.
In a statement, the India's Ministry of External Affairs said: The Ministers “positively noted” the extension of $400 million under the SAARC Currency Swap Arrangement and deferral of the ACU settlement of $515.2 million....
