Sri Lankan Speaker Abeywardena thanks India for help during financial crisis, says 'you saved us'

Describing New Delhi as a “close associate” and a “trustworthy friend” of Colombo, Sri Lanka’s Parliament Speaker Mahinda Yapa Abeywardena on Friday thanked India for the financial assistance it extended to the island nation when it reeled under an unprecedented economic crisis last year

Describing New Delhi as a "close associate" and a "trustworthy friend" of Colombo, Sri Lanka's Parliament Speaker Mahinda Yapa Abeywardena on Friday thanked India for the financial assistance it extended to the island nation when it reeled under an unprecedented economic crisis last year.

Sri Lanka was hit by a catastrophic financial crisis in 2022, the worst since its independence from Britain in 1948, due to a severe paucity of foreign exchange reserves. As the country struggled, locked in the throes of the crisis, India extended multi-pronged assistance of about $4 billion to it last year, through multiple credit lines and currency support, in line with India’s ‘Neighbourhood First’ policy.

In his address at the gala dinner reception hosted for delegates of the Indian Travel Congress here, Mr. Abeywardena said that India "saved us" during the financial crisis otherwise, there would have been "another bloodbath for all of us".

At the evening reception, the Speaker thanked India for the help extended to the cash-strapped nation and recalled the civilisational ties and similarities between the two countries and their cultures.

"Sri Lanka and India are very, very closely interconnected countries, culturally, nationally, and policy-wise, and above all, India has been a very close associate and trustworthy friend of Sri Lanka." Mr. Abeywardena said, adding that when "we were in trouble", India always helped out. "And, even this time, today, I heard that India is willing to extend our restructuring of loans for 12 years. Never expected, and never in the history, not a single country has extended that kind of assistance," he said.

He recalled the helping hand lent by India during the period of trouble last year that devastated the Sri Lankan economy, pushing it into a debt crisis.

"I must tell you, during the trouble that we had last year, you (India) saved us, India saved us otherwise, there would have been another bloodbath for all of us. So, that is how India came to help us." Mr. Abeywardena said.