: Sri Lanka crisis: India extends helping hand to tide over #IndiaNEWS #DEEP DIVE Colombo, April 11 | Sri Lanka enjoyed the best human development indicators in South Asia till now. Covid-19 has direct

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Sri Lanka crisis: India extends helping hand to tide over #IndiaNEWS #DEEP DIVE
Colombo, April 11 | Sri Lanka enjoyed the best human development indicators in South Asia till now. Covid-19 has direct impact on Sri Lankan tourism, supply chains, and remittances; and its economy but the country is facing a crisis because no lucrative economic activity took off despite large Chinese mega-project investments and borrowing spree.
Sri Lankans have been protesting over the unavailability of food and fuel for the past many weeks, as it has stopped imports due to lack of foreign exchange.
The forex crisis has been building up for the past many months, has resulted in serpentine queues for fuel, soaring food costs, long power outages and unavailability of medicines.
Sri Lankan President, Gotabaya Rajapaksa, declared a nationwide public emergency following violent protests and also removed his brother and Finance Minister Basil Rajapaksa for grave mismanagement of the economy.
Also, Members of Parliament from parties aligned with Rajapaksas Sri Lanka Podujana Peramuna led coalition announced they would now independently represent themselves.
The Governor of Sri Lankas central bank also has submitted his resignation as the country faces its worst economic crisis in decades.
Several economic refugees from Sri Lanka have already reached India, escaping unemployment and skyrocketing inflation and thousands more expected to reach India in coming weeks.
In this crisis, India came forward to assist Sri Lanka and provided a . 4-billion package of financial assistance. Sri Lanka has also signed a billion credit line for importing essential items such as rice, wheat flour, pulses, sugar and medicines and other life sustaining goods and services.
In addition to the credit lines, India this year extended Sri Lanka 0-million currency swap and a 0-million credit line for fuel purchases to Sri Lanka.
The Indian Oil Corporation released 6,000 metric tonnes of diesel under a 0 million credit line to Sri Lanka as it pitches in to mitigate the spike in power cuts in the island nation.
India agreed to help ease crippling shortages of rice also. India have started loading 40,000 tonnes of rice for prompt shipment to Sri Lanka in the first major food aid which could help Colombo bring down rice prices, which have been doubled in a year, adding fuel to the unrest.
Sri Lanka has become a net importer of rice as its production fell after Colombo banned all chemical fertilisers in 2021 to promote organic farming, a move that was later reversed.
In November 2021, over 100 tonnes of nano-nitrogen liquid fertilisers was given by India to Sri Lanka as the Rajapaksa government stopped the import of chemical fertilisers.
It is important to note that a million project to build wind turbines on three small islands in the Palk Strait between southern India and Sri Lanka was awarded to a Chinese firm in 2019, with funding lined up from the Asian Development Bank (ADB) effectively replacing the Chinese venture cleared by Colombo.

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