India says it will continue to support Sri Lanka in overcoming its financial crisis

India has reiterated its willingness to play “a constructive role” in supporting Sri Lanka’s efforts for recovery from the worst economic crisis

India has reiterated its willingness to play "a constructive role" in supporting Sri Lanka's efforts for recovery from the worst economic crisis.

Addressing the inauguration ceremony of the Construction, Power and Energy Expo 2023 in Colombo on Friday, India’s Deputy High Commissioner Vinod K. Jacob said that recent developments in India-Sri Lanka ties have strengthened the friendship and all-around cooperation between the two countries.

“We were the first creditor nation in January this year to convey the financing assurances needed to kick start the IMF process. India will continue to play a constructive role as a Co-Chair of the Creditors Committee along with Japan and the Paris Club,” he said.

India in January this year became the first country to hand over its letter of support for financing and debt restructuring of Sri Lanka to the International Monetary Fund (IMF).

In May this year, 17 countries that have extended loans to Sri Lanka formed an official creditor committee' co-chaired by India, Japan, and France, to discuss Sri Lanka’s request for debt treatment.

Paris Club is a group of officials from major creditor countries whose role is to find coordinated and sustainable solutions to the payment difficulties experienced by debtor countries.

Mr. Jacob said India’s financial and humanitarian support worth $4 billion to Sri Lanka is far in excess of the total anticipated Extended Fund Facility of the IMF.