Sri Lanka urges Islamabad to expedite release of financial assistance offered in 2021
Apr 12, 2022
Colombo [Sri Lanka], April 12 : Amid the growing economic crisis in Sri Lanka, Colombo has requested Islamabad to expedite the pending financial assistance offered by the country, according to a media report.
The proposed financial facilities include grant assistance of Pakistan Rupees 5.2 crores for sports, a credit line of USD 10 million for procurement of defence equipment, a new defence credit facility worth USD 50 million and a credit line of USD 200 million for procurement of mutually agreed items.
Notably, the proposal was made by Pakistan in February 2021 during the two-day official visit of former Pakistan Prime Minister Imran Khan and former Foreign Minister Shal Mahmood Qureshi to Colombo.
Sri Lanka is battling a severe economic crisis with food and fuel scarcity affecting a large number of the people in the island nation resulting in massive protests over the government's handling of the situation.
The economy has been in a free-fall since the onset of the COVID-19 pandemic, affecting tourism.
Sri Lanka is also facing a foreign exchange shortage, which has affected its capacity to import food and fuel. The shortage of essential goods forced Sri Lanka to seek assistance from friendly countries.
The economic situation has led to huge protests with demands for the resignation of Prime Minister Mahinda Rajapaksa and President Gotabaya Rajapaksa.
