Jaishankar Meets Sri Lankan Finance Minister Over Economic Crisis, Discusses Aid

The island nation is witnessing a economic crisis triggered by a severe shortage of foreign exchange

External Affairs Minister S Jaishankar with Sri Lanka Finance Minister Basil Rajapaksha in Colombo on Monday, 28 March

(Photo: Twitter/ S Jaishankar)

External Affairs Minister S Jaishankar met Sri Lanka Finance Minister Basil Rajapaksha in Colombo on Monday, 28 March, and held discussions over the country’s economic crisis triggered by a severe shortage of foreign exchange and India’s plan to support the country in this situation.

Jaishankar said in a tweet:

“Began the visit by meeting Finance Minister Basil Rajapaksha. Discussed the economic situation and India’s supportive response. We will continue to be guided by Neighbourhood First.”

Jaishankar is on a two-day visit to the island nation and was greeted on Sunday by four Sri Lankan ministers at the airport, including Minister of Energy Gamini Lokuge and State Minister of Aviation and Export Zones Development DV Chanaka.

18th BIMSTEC Meet 

The External Affairs Minister also attended the BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) meeting on Tuesday, which was aimed at strengthening economic engagement among member countries.

Jaishankar tweeted after the event:

"Participated at the 18th BIMSTEC Ministerial Meeting in Colombo today (Tuesday). Thank FM Prof GL Peiris for his hospitality. Emphasized our commitment to intensify and expand areas of cooperation, especially connectivity, energy and maritime cooperation."

Jaishankar also responded to a Sri Lankan journalist's tweet pertaining to a medicine crisis on Tuesday, saying that he was "disturbed" after the news emerged that a hospital in Sri Lanka had suspended surgeries due to a shortage of medicines.

"Scheduled surgeries at the Peradeniya Hospital were suspended due to a shortage of medicines. Only emergency surgeries are taking place - NewsFirst #LKA #SriLanka #EconomicCrisisLK," the journalist had expressed.

The foreign minister said in a tweet that he would ask the Indian High Commissioner in the country to get in touch with local authorities and help in any way possible.

"Am asking High Commissioner Baglay to contact and discuss how India can help," Jaishankar tweeted.

India's Efforts of Helping its Neighbour

Sri Lanka is witnessing an acute foreign exchange crunch with the IMF noting adverse impact on the economy including rocketing public debt, low foreign currency reserves, and persistently large financing needs in the next few years.

In an effort to soothe public anger and reign in the economic nightmare, the central government of Sri Lanka has turned to India for support.

The island nation is one of India’s key maritime neighbours in the Indian Ocean Region and holds a priority in Prime Minister Narednra Modi’s vision of ‘SAGAR’ and Neighbourhood First.

Recently, as a form of financial assistance to Sri Lanka, India had announced that it would offer a $1 billion line of credit to the country to buy urgently needed essential items such as healthcare and food. This week, India further sent 40,000 tonnes of diesel to Sri Lanka.

Previously, New Delhi also extended a $500 million line of credit to Colombo to aid the country in purchasing petroleum products.