India rushes to help Sri Lanka while China presses for FTA hurting Colombo's finances
Apr 12, 2022
Colombo [Sri Lanka], April 12 : Even as India has rushed to help its neighbour Sri Lanka, which is facing a severe economic crisis, China has in turn been pressing the Island nation for a Free Trade Agreement that would hurt Colombo's finances.
China's actions have allowed the Sri Lankan leaders to approach India for all of their needs, including loans and other items such as rice, fertilizer, maritime security equipment, train engines, and aide for Northern fishermen families, reported India Blooms.
Sri Lanka's economic crisis has deepened and amid wide protests, the nation is also witnessing grave political stability. The people of Sri Lanka are urging the Rajapaksa government to leave the country blaming the leadership for plunging it into an economic abyss.
India is becoming a stronger and more mutually beneficial partner to Sri Lanka. Apart from assistance during the pandemic and fertilizer chaos, in which India delivered nano fertilizer to save Sri Lankan farmers, India has offered USD 500 million in gasoline and a USD 1 billion loan facility to purchase goods from India due to the current economic crisis.
India recently pledged to donate medicines to Peradeniya Hospital, which was running low on supplies due to the US dollar crisis and purchasing medicines became impossible.
Sri Lankans were irked by the government's mismanagement of financial affairs, corruption and bad judgment on initiatives that backfired, leaving the country impoverished - mostly in terms of lacking foreign exchange reserves.
Many industries in the Island nation are seeing huge problems. Sri Lankan government is unable to import paper for the printing of exam papers, and the print media is already feeling the strain of a paucity of paper for printing newspapers, with prominent newspapers issuing slim editions these days.
On March 18, India made significant contributions to Sri Lanka's defence sector. Sri Lanka has requested grant assistance for the supply of a 4,000 MT Floating Dock (FD) for the Sri Lanka Navy. The Indian government then provides DO-228 Dornier Reconnaissance Aircraft for maritime surveillance, reported the media outlet.
India also signed an MoU for the establishment of modern computer labs and smart boards with customized curriculum software in schools in the Galle District in Sri Lanka.
