India says everything should fall in place for Sri Lanka after IMF Executive Board Decision on March 20

By Sanath Nanayakkare in India

Sri Lanka’s economic recovery process will gather momentum after the International Monetary Fund (IMF) grants an extended fund facility of USD 2.9 billion dollars, says Puneet Agrawal, Joint Secretary, Indian Ocean Region. Agrawal said so, addressing several Sri Lankan journalists during a media briefing held at the Indian External Affairs Ministry, in New Delhi, yesterday.

” India took the initiative of supporting Sri Lanka’s debt restructuring process by giving its financial assurances to Sri Lanka’s bilateral creditors which pushed others to do the same. Once the IMF support is officially ensured for Sri Lanka, the country should be able to manage its balance of payment crisis and its way forward in its recovery and growth path, envisioned by the Sri Lankan authorities,” he said.

He, however, pointed out that Sri Lanka’s sustainable future should be based on increased exports, foreign direct investments, foreign remittances and a boost in tourism.

” There are many Indian investors keen on investing in Sri Lanka in renewable energy projects, oil exploration, Trincomalee oil tank farm project, dairy sector among other projects. However, for this Sri Lanka should take proactive measures to enhance its doing business environment and then Indian investors will see Sri Lanka as a viable investment destination.” he said.

Responding to a question on the repayment of Indian loans by Sri Lanka in the future, the Joint Secretary said that India was confident that Sri Lanka would make its commitments in a timely manner though certain extensions on current loans have been sought and already approved.

” Currency swaps are swaps, credit lines are credit lines and grants and aid have their own characteristcs and we are confident that the Sri Lankan government would treat each of these in its due manner.