Sri Lanka will remain a middle-income country but request the World Bank to grant it some loans generally offered to poorer nations, the president's office said on Tuesday, clarifying a cabinet spokesperson's earlier comments on the matter.

The island nation of 22 million is facing its worst economic crisis in more than seven decades and the spokesperson said earlier in the day that the government would seek to change its economic status to "low-income country" for easier funding.

President Ranil Wickremesinghe's office, however, said the status change would not happen.

"Sri Lanka will remain a middle-income country," the office said in a statement. "We will request the World Bank to grant the country eligibility to obtain loans offered by the International Development Association (IDA)."

The IDA is a division of the World Bank that offers grants and loans with zero or low-interest rates to the world's poorest nations in an effort to combat poverty.&nbsp;

The Colombo branch of the World Bank did not immediately respond to a request from Sri Lanka. The "key priority" was to move on with debt restructuring and economic reforms to get the country's growth back on track, it said, adding that it would keep talking to Sri Lanka.

Also Read:<a href="https://www.wionews.com/photos/japan-reopens-for-tourists-after-two-and-a-half-years-of-covid-19-restrictions-524437">&nbsp;Japan reopens for tourists after two-and-a-half years of Covid restrictions</a>

Last year, the government estimated Sri Lanka's GDP to be worth $89 billion. Even with the expected 8.7 per cent&nbsp;decline in GDP this year and taking currency depreciation into account, the economy will still be approximately $75 billion, with a per-capita income of roughly $3,400.&nbsp;

According to the World Bank, low-income nations are those with a 2021 per-capita income of $1,085 or less.

(with inputs from agencies)

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Sri Lanka will remain a middle-income country but request the World Bank to grant it some loans generally offered to poorer nations, the president's office said on Tuesday, clarifying a cabinet spokesperson's earlier comments on the matter.

Sri Lanka will remain a middle-income country but request the World Bank to grant it some loans generally offered to poorer nations, the president's office said on Tuesday, clarifying a cabinet spokesperson's earlier comments on the matter. The island nation of 22 million is facing its worst economic crisis in more than seven decades and the spokesperson said earlier in the day that the government would seek to change its economic status to "low-income country" for easier funding. President Ranil Wickremesinghe's office, however, said the status change would not happen. "Sri Lanka will remain a middle-income country," the office said in a statement. "We will request the World Bank to grant the country eligibility to obtain loans offered by the International Development Association (IDA)." The IDA is a division of the World Bank that offers grants and loans with zero or low-interest rates to the world's poorest nations in an effort to combat poverty. The Colombo branch of the World Bank did not immediately respond to a request from Sri Lanka. The "key priority" was to move on with debt restructuring and economic reforms to get the country's growth back on track, it said, adding that it would keep talking to Sri Lanka. Also Read: Japan reopens for tourists after two-and-a-half years of Covid restrictions Last year, the government estimated Sri Lanka's GDP to be worth $89 billion. Even with the expected 8.7 per cent decline in GDP this year and taking currency depreciation into account, the economy will still be approximately $75 billion, with a per-capita income of roughly $3,400. According to the World Bank, low-income nations are those with a 2021 per-capita income of $1,085 or less. (with inputs from agencies)

Sri Lanka clarifies remaining 'middle-income' country, but still seeks concessional loans

Political unrest continues on the island nation. Months after widespread protest force Gotabaya Rajapaksa to resign, in the latest, a tense situation has been reported at the Galle Face green area of Colombo where the police arrested at least five protesters.

Sri Lanka | Galle Face: Police crackdown on peaceful protesters

Former Sri Lankan prime minister Mahinda Rajapaksa addressed his first public gathering since May. This comes almost five months after Mahinda Rajapaksa was forced to resign from the government.

Sri Lanka's Ex-PM Mahinda Rajapaksa addresses first public meeting since May

Sri Lanka's former Prime Minister Mahinda Rajapaksa addressed a public gathering first time since the month of May. While addressing the public meeting, he initially got confused to who is the President of the country? Watch the video to know, what happened after.

Sri Lanka's ex-PM Mahinda Rajapaksa addresses public gathering, confuses President's name

Sri Lanka's Ex-PM Mahinda Rajapaksa pledges to support Wickremesinghe

Sri Lanka's Supreme Court has allowed proceedings of a case filed by a rights group against the Rajapaksa clan, alleging that the members of the powerful family were directly responsible for the country's foreign debt and the worst economic crisis.

Sri Lanka top court permits proceedings against Rajapaksas

Trouble is mounting for Sri Lanka's Rajapaksa brothers. A top court in Sri Lanka has granted permission for legal proceedings against the Island's Former President Gotabaya Rajapaksa, Former Prime Minister Mahinder Rajapaksa and Former Finance Minister Basil Rajapaksa.

Court tightens noose around Rajapaksa brothers, petitioner seeks accountability on economic crisis

Sri Lanka's economic crisis has upended the lives of tea pickers in the northern part of the island. While inflation has risen to 90%, their wages remain unchanged.

South Asia Diary | Lankan tea pickers face generational poverty

Despite Sri Lanka's economic turmoil, in an effort to assist women and girls who couldn't afford sanitary products due to the current economic difficulties, the government has cut taxes on them.

The office of President Ranil Wickremesinghe on Sunday announced that imports of raw materials used to create feminine hygiene products will now be exempt from customs duties, airport duties, and other taxes.

<a href="https://www.wionews.com/south-asia/why-sri-lanka-bent-toward-economic-crisis-know-these-5-reasons-497442">Also read |&nbsp;Why Sri Lanka bent toward economic crisis? Know these five reasons</a>

Wickremesinghe's official statement stated that due to a decrease in import duties, imported pads and tampons will cost 20 per cent less. The announcement aims to "make hygiene products more affordable to ensure cleanliness among females."

Many schoolgirls and women in Sri Lanka, like in other developing nations, would stay at home during their menstruations because they couldn't afford sanitary products even before the crisis last year.&nbsp;

According to research conducted by Advocata, nearly half of Sri Lanka's 5.3 million women of reproductive age live in "period poverty", which means that they cannot afford sanitary products.&nbsp;

Campaigners contend that the situation has gotten worse as a result of chronic shortages of basic necessities and high inflation in the South Asian country.&nbsp;

<a href="https://www.wionews.com/south-asia/sri-lanka-power-cut-govt-official-blames-poor-oil-quality-minister-threatens-legal-action-520217">Also read |&nbsp;Sri Lanka power cut: Govt official blames poor oil quality, minister threatens legal action&nbsp;</a>

Not just this, the new Wickremesinghe administration started enforcing a new tax of 2.5 per cent on all goods and services on Sunday (October 2). The government further reduced petrol prices by a small margin to match global prices, but diesel prices remained unchanged.

The nation fell behind on its $51 billion foreign debt in April, and now it is negotiating a $2.9 billion bailout with the IMF. The resignation of former president Gotabaya Rajapaksa in July came after months of demonstrations against him and his government against economic har

(With inputs from agencies)

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Despite Sri Lanka's economic turmoil, in an effort to assist women and girls who couldn't afford sanitary products due to the current economic difficulties, the government has cut taxes on them.

Despite Sri Lanka's economic turmoil, in an effort to assist women and girls who couldn't afford sanitary products due to the current economic difficulties, the government has cut taxes on them. The office of President Ranil Wickremesinghe on Sunday announced that imports of raw materials used to create feminine hygiene products will now be exempt from customs duties, airport duties, and other taxes. Also read | Why Sri Lanka bent toward economic crisis? Know these five reasons Wickremesinghe's official statement stated that due to a decrease in import duties, imported pads and tampons will cost 20 per cent less. The announcement aims to "make hygiene products more affordable to ensure cleanliness among females." Many schoolgirls and women in Sri Lanka, like in other developing nations, would stay at home during their menstruations because they couldn't afford sanitary products even before the crisis last year. According to research conducted by Advocata, nearly half of Sri Lanka's 5.3 million women of reproductive age live in "period poverty", which means that they cannot afford sanitary products. Campaigners contend that the situation has gotten worse as a result of chronic shortages of basic necessities and high inflation in the South Asian country. Also read | Sri Lanka power cut: Govt official blames poor oil quality, minister threatens legal action Not just this, the new Wickremesinghe administration started enforcing a new tax of 2.5 per cent on all goods and services on Sunday (October 2). The government further reduced petrol prices by a small margin to match global prices, but diesel prices remained unchanged. The nation fell behind on its $51 billion foreign debt in April, and now it is negotiating a $2.9 billion bailout with the IMF. The resignation of former president Gotabaya Rajapaksa in July came after months of demonstrations against him and his government against economic har (With inputs from agencies) WATCH WION LIVE HERE

Sri Lanka: Ranil's administration cuts tax on female sanitary products; diesel prices remain same 

Sri Lanka's war-ravaged Tamils are being pushed to the brink by the country's economic crisis. Mariam Wardak brings you the story of two war survivors in the northern part of the island who are struggling to make ends meet.

South Asia Diary | Lankan Tamils pushed to the brink by economic crisis

The island government has now ordered civil servants to not express their opinions on social media. The move comes after the claims of dozens of school children fainting due to lack of food and surfaced, provincial health officials and teachers blamed the dire economic crisis in the country, however the authorities dismissed the claim of malnutrition.

Sri Lanka extends crackdown on freedom of speech of civil servants

Sri Lanka is facing a major power outage. A key power plant has shut down unexpectedly. A senior official blamed the quality.

Sri Lanka: 'Oil burnt in the furnaces had too much Sulphur in it'

Sri Lanka, known for its tourism, has gone from bad to worse at this time. This is the toughest period for Sri Lanka since independence. From petrol and diesel to milk and other food items, every essential commodity has become so expensive that people are unable to buy it. The situation has become such that an emergency has been imposed in the country and President Gotabaya Rajapaksa has fled the country. But for what reasons did Sri Lanka turn towards this economic crisis? Here it is.

1. The Government's Mismanagement&nbsp;

For a long time, the Sri Lankan government took large sums of money in the form of loans from abroad for public services, leaving the country in debt. The government ignored expenditure over income, which led to a budget deficit.

2. Tourism&nbsp;

Tourism is also a very big factor in Sri Lanka's condition. Since the Easter bombings at various churches in Colombo killed 253 people in April 2019, tourists have been hesitant to visit the place. This affected its foreign exchange reserves. In such a situation, the tourism industry was destroyed, which is a part of the 10 per cent GDP of the country. Tourism also came to a standstill due to COVID-19.

3. China's Interference&nbsp;

The proximity of China has weighed heavily on the island nation. China's strategy is such that in countries where it has increased its investments, political and economic instability have increased rapidly. Pakistan is an example of that. Its economic condition is also not sound.&nbsp;

4. Prohibition of Fertilizer Imports

To make Sri Lanka a 100% organic farming country, the government has completely banned all fertiliser imports since 2021. This severely affected the food production in the country. Rising food prices, currency depreciation, and to control the rapidly depleting foreign exchange reserves, the Sri Lankan President declared an economic emergency. This decision had an impact on the economy.&nbsp;

5. Foreign reserve scarcity

Economic mismanagement in Sri Lanka has depleted 70 per cent of Sri Lanka’s foreign reserves with only $2.31 billion left with debt repayment of over $4 billion. Sri Lanka's high dependence on imports of essential commodities such as sugar, pulses, and cereals adds fuel to the economic slowdown as the island nation lacks foreign reserves to pay its import bills.&nbsp;

Apart from that, Sri Lanka's FDI also declined. According to government data, FDI stood at $548 million in 2020, which decreased by $793 million and $1.6 billion in 2019 and 2018, respectively.

Recently, riots have been happening everywhere in Sri Lanka. There is anger among the people, and Sri Lankans are awaiting President Gotabaya Rajapaksa's resignation. 
 
(Disclaimer: The views of the writer do not represent the views of WION or ZMCL. Nor does WION or ZMCL endorse the views of the writer.)

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Sri Lanka, known for its tourism, has gone from bad to worse at this time. This is the toughest period for Sri Lanka since independence. From petrol and diesel to milk and other food items, every essential commodity has become so expensive that people are unable to buy it.

Sri Lanka, known for its tourism, has gone from bad to worse at this time. This is the toughest period for Sri Lanka since independence. From petrol and diesel to milk and other food items, every essential commodity has become so expensive that people are unable to buy it. The situation has become such that an emergency has been imposed in the country and President Gotabaya Rajapaksa has fled the country. But for what reasons did Sri Lanka turn towards this economic crisis? Here it is. 1. The Government's Mismanagement For a long time, the Sri Lankan government took large sums of money in the form of loans from abroad for public services, leaving the country in debt. The government ignored expenditure over income, which led to a budget deficit. 2. Tourism Tourism is also a very big factor in Sri Lanka's condition. Since the Easter bombings at various churches in Colombo killed 253 people in April 2019, tourists have been hesitant to visit the place. This affected its foreign exchange reserves. In such a situation, the tourism industry was destroyed, which is a part of the 10 per cent GDP of the country. Tourism also came to a standstill due to COVID-19. 3. China's Interference The proximity of China has weighed heavily on the island nation. China's strategy is such that in countries where it has increased its investments, political and economic instability have increased rapidly. Pakistan is an example of that. Its economic condition is also not sound. 4. Prohibition of Fertilizer Imports To make Sri Lanka a 100% organic farming country, the government has completely banned all fertiliser imports since 2021. This severely affected the food production in the country. Rising food prices, currency depreciation, and to control the rapidly depleting foreign exchange reserves, the Sri Lankan President declared an economic emergency. This decision had an impact on the economy. 5. Foreign reserve scarcity Economic mismanagement in Sri Lanka has depleted 70 per cent of Sri Lanka’s foreign reserves with only $2.31 billion left with debt repayment of over $4 billion. Sri Lanka's high dependence on imports of essential commodities such as sugar, pulses, and cereals adds fuel to the economic slowdown as the island nation lacks foreign reserves to pay its import bills. Apart from that, Sri Lanka's FDI also declined. According to government data, FDI stood at $548 million in 2020, which decreased by $793 million and $1.6 billion in 2019 and 2018, respectively. Recently, riots have been happening everywhere in Sri Lanka. There is anger among the people, and Sri Lankans are awaiting President Gotabaya Rajapaksa's resignation. (Disclaimer: The views of the writer do not represent the views of WION or ZMCL. Nor does WION or ZMCL endorse the views of the writer.) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Why Sri Lanka bent toward economic crisis? Know these five reasons

The economic crisis in Sri Lanka has pushed its health care system to the brink. Residents are struggling to get basic medication and checkups with soaring inflation in the country.

Sri Lanka: Economic crisis pushes health system to the brink, struggles with medicine shortages

Sri Lanka's second poorest district where most of the residents are from the Tamil Community whose wounds are yet to heal from the Civil War, and the present economic crisis acts as a second blow for this community.

WION Fineprint| Economic crisis worsens conditions of war-shattered Tamils

India does not plan to provide fresh financial support to Sri Lanka on top of the nearly $4 billion it has extended this year, two sources told Reuters, as the island's battered economy starts to stabilise after a preliminary loan agreement with the IMF.

India has been the biggest provider of aid this year to its southern neighbour, which is fighting its worst economic crisis in more than seven decades and struggling to pay for imports, although the situation now is less severe than it was between May and July.

Also Read |&nbsp;<a href="https://www.wionews.com/world/australia-commits-another-25-million-in-emergency-aid-to-sri-lanka-takes-total-to-75-million-508249">Australia commits another $25 million in emergency aid to Sri Lanka</a>

"We have already given $3.8 billion worth of assistance. Now it's all about the IMF," an Indian government source with direct knowledge of discussions with Sri Lanka told Reuters. "Countries can't keep giving assistance."

A Sri Lankan government source said India's decision was not a surprise and that New Delhi had "signalled" to them a few months ago that there would be little further large-scale support forthcoming.

The source, however, said that India would be invited to a donor conference that Sri Lanka was planning to hold with Japan, China and possibly, South Korea, later this year.

Another Sri Lankan government source said that talks between India and Sri Lanka for a $1 billion swap arrangement and its request for a second $500 million credit line to purchase fuel, made in May, had made little headway.

The sources declined to be named, since they were not authorised to speak to media.

Also Read |&nbsp;<a href="https://www.wionews.com/india-news/india-urges-imf-to-provide-urgent-bailout-to-sri-lanka-472066">India urges IMF to provide urgent bailout to Sri Lanka</a>

India's finance ministry, and Sri Lanka's finance ministry and its central bank did not immediately respond to requests for comment.

Sri Lanka and the IMF reached a preliminary agreement in early September for a loan of about $2.9 billion, which is contingent on the country receiving financing assurances from official creditors and negotiations with private creditors.

"Our focus is more on taking forward the IMF programme and getting ourselves out of this mess on our own," said one of the Sri Lankan sources.

Sri Lanka has worked to use its limited foreign exchange reserves to meet fuel imports and reallocate funding from multilateral agencies for other critical imports, including fertiliser, cooking gas and medicine, said the other Sri Lankan source.

The country of 22 million people has been battling shortages of essentials, including fuel, food and medicines, for months after its foreign exchange reserves dropped to record lows, stalling imports and stoking unprecedented public unrest.

&nbsp;

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India does not plan to provide fresh financial support to Sri Lanka on top of the nearly $4 billion it has extended this year, two sources told Reuters, as the island's battered economy starts to stabilise after a preliminary loan agreement with the IMF.

India does not plan to provide fresh financial support to Sri Lanka on top of the nearly $4 billion it has extended this year, two sources told Reuters, as the island's battered economy starts to stabilise after a preliminary loan agreement with the IMF. India has been the biggest provider of aid this year to its southern neighbour, which is fighting its worst economic crisis in more than seven decades and struggling to pay for imports, although the situation now is less severe than it was between May and July. Also Read | Australia commits another $25 million in emergency aid to Sri Lanka "We have already given $3.8 billion worth of assistance. Now it's all about the IMF," an Indian government source with direct knowledge of discussions with Sri Lanka told Reuters. "Countries can't keep giving assistance." A Sri Lankan government source said India's decision was not a surprise and that New Delhi had "signalled" to them a few months ago that there would be little further large-scale support forthcoming. The source, however, said that India would be invited to a donor conference that Sri Lanka was planning to hold with Japan, China and possibly, South Korea, later this year. Another Sri Lankan government source said that talks between India and Sri Lanka for a $1 billion swap arrangement and its request for a second $500 million credit line to purchase fuel, made in May, had made little headway. The sources declined to be named, since they were not authorised to speak to media. Also Read | India urges IMF to provide urgent bailout to Sri Lanka India's finance ministry, and Sri Lanka's finance ministry and its central bank did not immediately respond to requests for comment. Sri Lanka and the IMF reached a preliminary agreement in early September for a loan of about $2.9 billion, which is contingent on the country receiving financing assurances from official creditors and negotiations with private creditors. "Our focus is more on taking forward the IMF programme and getting ourselves out of this mess on our own," said one of the Sri Lankan sources. Sri Lanka has worked to use its limited foreign exchange reserves to meet fuel imports and reallocate funding from multilateral agencies for other critical imports, including fertiliser, cooking gas and medicine, said the other Sri Lankan source. The country of 22 million people has been battling shortages of essentials, including fuel, food and medicines, for months after its foreign exchange reserves dropped to record lows, stalling imports and stoking unprecedented public unrest.

No more funding from India to Sri Lanka as IMF talks progress: Sources

Sri Lanka's economic crisis has upended the lives of the country's fishermen. The lack of kerosene is forcing them to limit their time at sea. Without immediate government assistance, the 1 million strong industry could collapse.

South Asia Diary | Sri Lanka fuel shortage: 'No Kerosene, no food,' says fishermen

In Sri Lanka's capital Colombo, the 350-meter tall Lotus Tower is now accessible to the public. The Tower was built on an estimated 113 million US Dollars and financed using Chinese loans.

Sri Lanka: Colombo's Lotus tower opens despite controversies

Sri Lankan Navy said a joint operation with the Lankan Coast Guard led to the interception of an Indian boat and its five crew caught allegedly carrying Kerala Cannabis (434kgs)&nbsp;in the northwestern waters of the island nation. This operation carried out on Tuesday (September 13) evening&nbsp;also led to the apprehension of a Lankan fishing boat and five Lankan nationals who were allegedly connected with the smuggling attempt.&nbsp;

"SLCGS Suraksha engaged in this special operation inspected a suspicious Indian dhow in Sri Lankan waters west of the Kudiramalai Point, Puttalam through the International Maritime Boundary Line (IMBL) on 13th September. The inspection led to the recovery of about 434kg (wet weight) of Kerala cannabis in nine sacks and it prompted SLCGS Suraksha to seize the stock of narcotics with five Indian suspects aboard the dhow," read the statement from the Lankan Navy.&nbsp;

It added,&nbsp;SLCGS Suraksha also seized a local one-day fishing trawler with five Sri Lankans, on suspicion that the trawler had reached the sea area to transfer the consignment from the Indian dhow and bring them ashore.&nbsp;

The street value of the stock of Kerala cannabis seized in this operation is believed to be around USD 352,000.&nbsp;The intercepted Indian vessel, the contraband, and the 10 suspects are to be handed over to the Kalpitiya Police for legal proceedings and investigation.&nbsp;

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Sri Lankan Navy said a joint operation with the Lankan Coast Guard led to the interception of an Indian boat and its five crew caught allegedly carrying Kerala Cannabis (434kgs) in the northwestern waters of the island nation.

Sri Lankan Navy said a joint operation with the Lankan Coast Guard led to the interception of an Indian boat and its five crew caught allegedly carrying Kerala Cannabis (434kgs) in the northwestern waters of the island nation. This operation carried out on Tuesday (September 13) evening also led to the apprehension of a Lankan fishing boat and five Lankan nationals who were allegedly connected with the smuggling attempt. "SLCGS Suraksha engaged in this special operation inspected a suspicious Indian dhow in Sri Lankan waters west of the Kudiramalai Point, Puttalam through the International Maritime Boundary Line (IMBL) on 13th September. The inspection led to the recovery of about 434kg (wet weight) of Kerala cannabis in nine sacks and it prompted SLCGS Suraksha to seize the stock of narcotics with five Indian suspects aboard the dhow," read the statement from the Lankan Navy. It added, SLCGS Suraksha also seized a local one-day fishing trawler with five Sri Lankans, on suspicion that the trawler had reached the sea area to transfer the consignment from the Indian dhow and bring them ashore. The street value of the stock of Kerala cannabis seized in this operation is believed to be around USD 352,000. The intercepted Indian vessel, the contraband, and the 10 suspects are to be handed over to the Kalpitiya Police for legal proceedings and investigation. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Lankan Navy apprehends Indian boat, arrests 10 for alleged contraband smuggling

India has become Sri Lanka's biggest lender in 2022, providing the island nation with loans of USD 377 million as it battled an unprecedented political crisis and economic unrest, as per&nbsp;the Verite Research think tank.&nbsp;

India is followed by the Asian Development Bank (ADB) with loans totalling USD 360 million. They make up about 76 per cent&nbsp;of all disbursements&nbsp;from January to April 2022.&nbsp;

According to Verite Research, a Colombo-based independent interdisciplinary think tank that offers strategic analysis and advice for governments and the private sector in Asia, India has emerged as Sri Lanka's largest bilateral lender with a contribution of USD 377 million out of a total disbursement of loans amounting to USD 968 million in the first four months of this year.

China has been Sri Lanka's largest bilateral lender between 2017 and 2021. China contributed USD 947 million in 2021, of which USD 809 million came from loans taken out with the China Development Bank. The major multilateral lender during that time was the ADB.&nbsp;

India's credit lines allowed Sri Lanka to buy petrol and necessities at the start of this year when it was experiencing its greatest economic crisis.&nbsp;

According to the Indian High Commission in this city, India has provided roughly USD 4 billion in overall credit support to Sri Lanka this year, including currency swaps.

Also Read:&nbsp;<a href="https://www.wionews.com/world/kyiv-astronomical-observatory-claims-ufos-hovering-over-ukrainian-skies-516449">Kyiv astronomical observatory claims UFOs hovering over Ukrainian skies</a>

Gotabaya Rajapaksa was removed from office in mid-July as a result of the public demonstrations that have been taking place since the end of March in response to the economic hardships and shortages of basic necessities.&nbsp;

When India's 700 million USD dedicated credit line for fuel imports ran out in late June, there were long lines for petrol at Indian Oil Company retail stations. At the time, the state fuel company solely provided fuel to emergency services.&nbsp;

Recently, Sri Lanka and the IMF reached an agreement for a USD 2.9 billion loan facility, which is contingent upon a debt restructuring agreement between Sri Lanka and its creditors.&nbsp;

Due to the currency crisis, Sri Lanka declared its default on its international debt in mid-April. The nation has a foreign debt of USD 51 billion, of which USD 28 billion must be paid by 2027.

(with inputs from, agencies)

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India has become Sri Lanka's biggest lender in 2022, providing the island nation with loans of USD 377 million as it battled an unprecedented political crisis and economic unrest, as per the Verite Research think tank.

India has become Sri Lanka's biggest lender in 2022, providing the island nation with loans of USD 377 million as it battled an unprecedented political crisis and economic unrest, as per the Verite Research think tank. India is followed by the Asian Development Bank (ADB) with loans totalling USD 360 million. They make up about 76 per cent of all disbursements from January to April 2022. According to Verite Research, a Colombo-based independent interdisciplinary think tank that offers strategic analysis and advice for governments and the private sector in Asia, India has emerged as Sri Lanka's largest bilateral lender with a contribution of USD 377 million out of a total disbursement of loans amounting to USD 968 million in the first four months of this year. China has been Sri Lanka's largest bilateral lender between 2017 and 2021. China contributed USD 947 million in 2021, of which USD 809 million came from loans taken out with the China Development Bank. The major multilateral lender during that time was the ADB. India's credit lines allowed Sri Lanka to buy petrol and necessities at the start of this year when it was experiencing its greatest economic crisis. According to the Indian High Commission in this city, India has provided roughly USD 4 billion in overall credit support to Sri Lanka this year, including currency swaps. Also Read: Kyiv astronomical observatory claims UFOs hovering over Ukrainian skies Gotabaya Rajapaksa was removed from office in mid-July as a result of the public demonstrations that have been taking place since the end of March in response to the economic hardships and shortages of basic necessities. When India's 700 million USD dedicated credit line for fuel imports ran out in late June, there were long lines for petrol at Indian Oil Company retail stations. At the time, the state fuel company solely provided fuel to emergency services. Recently, Sri Lanka and the IMF reached an agreement for a USD 2.9 billion loan facility, which is contingent upon a debt restructuring agreement between Sri Lanka and its creditors. Due to the currency crisis, Sri Lanka declared its default on its international debt in mid-April. The nation has a foreign debt of USD 51 billion, of which USD 28 billion must be paid by 2027. (with inputs from, agencies)

With USD 377 million in loans, India is Sri Lanka's top lender in 2022: Report

India criticised Sri Lanka over the 'lack of measurable progress' in the reconciliation of Lankan Tamils. Is India leveraging the issue after Colombo's decision to permit a Chinese research voyage last month? Molly Gambhir tells you.

Gravitas: India calls out Sri Lanka over Tamil reconciliation

India has extended assistance of $3.8 billion to help Sri Lanka recover from the economic collapse which saw unprecedented turmoil. Not long after, the India has put Sri Lanka in the dock at the UN Human Rights Council (UNHRC) for lack of “measurable progress” in resolving the Tamil minority issue. &nbsp;

New Delhi expressed concern on the human rights situation in Sri Lanka, namely, the continued denial of justice, dignity and peace to the minority Tamils by not sticking to its commitment to implement the 13th Amendment to the constitution. &nbsp;

Obviously, India is miffed over Colombo allowing a so-called Chinese “spy” ship to dock at Hambantota last month in spite of India’s opposition to it. Such situations are unavoidable for a country that is in debt to both India and China; a carrot from one is bound to bring forth the stick from the other. &nbsp;

In the race for regional supremacy between India and China, it is not only Sri Lanka but Nepal too that is caught in a cleft-stick. &nbsp;

In early September, India’s Chief of Army Staff, General Manoj Pande went on a four-day visit to Nepal. For all the warmth and friendliness that marked his engagements, Nepal did not appear keen to see its citizens, especially the Gorkhas, opting for the Agnipath scheme to join the India Army. However, the government said that though its thinking on the matter was positive, a decision would be taken only after an all-party consultation.&nbsp;

The week after General Pande’s visit saw Nepal’s Foreign Secretary Bharat Raj Paudyal travelling to New Delhi for two days at the invitation of Foreign Secretary Vinay Kwatra. The two foreign secretaries reviewed the entire spectrum of bilateral cooperation from the economic, commercial and development to culture and people-people relations.&nbsp;

While they were preparing for these talks, on the eve of Paudyal’s visit, China pulled off a diplomatic coup in Kathmandu: a six-point agreement between visiting Chairman of China’s National People’s Congress, Li Zhanshau, and Speaker of Nepal’s Houe of Representatives, Agni Prasad Sapkota. This is expected to provide the basis for China-Nepal cooperation in multiple sectors and moving forward on projects under China’s Belt and Road Initiative (BRI). &nbsp;

This unprecedented agreement is significant because India remains opposed to the BRI, but that has not deterred Nepal from signing up for it.&nbsp;

The power play of the Asian giants in the neighbourhood is in full flow. Whether smaller countries like Sri Lanka and Nepal are getting the best of both India and China or losing out on the traditional and tested advantages of being in India’s “zone of influence” seems to be a moot question at this stage.&nbsp;

You can now write for wionews.com and be a part of the community. Share your stories and opinions with us <a href="https://www.wionews.com/content-contribution-registration-form">here</a>.

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India has extended assistance of $3.8 billion to help Sri Lanka recover from the economic collapse which saw unprecedented turmoil. Not long after, the India has put Sri Lanka in the dock at the UN Human Rights Council (UNHRC) for lack of “measurable progress” in resolving the Tamil minority issue.

India has extended assistance of $3.8 billion to help Sri Lanka recover from the economic collapse which saw unprecedented turmoil. Not long after, the India has put Sri Lanka in the dock at the UN Human Rights Council (UNHRC) for lack of “measurable progress” in resolving the Tamil minority issue. New Delhi expressed concern on the human rights situation in Sri Lanka, namely, the continued denial of justice, dignity and peace to the minority Tamils by not sticking to its commitment to implement the 13th Amendment to the constitution. Obviously, India is miffed over Colombo allowing a so-called Chinese “spy” ship to dock at Hambantota last month in spite of India’s opposition to it. Such situations are unavoidable for a country that is in debt to both India and China; a carrot from one is bound to bring forth the stick from the other. In the race for regional supremacy between India and China, it is not only Sri Lanka but Nepal too that is caught in a cleft-stick. In early September, India’s Chief of Army Staff, General Manoj Pande went on a four-day visit to Nepal. For all the warmth and friendliness that marked his engagements, Nepal did not appear keen to see its citizens, especially the Gorkhas, opting for the Agnipath scheme to join the India Army. However, the government said that though its thinking on the matter was positive, a decision would be taken only after an all-party consultation. The week after General Pande’s visit saw Nepal’s Foreign Secretary Bharat Raj Paudyal travelling to New Delhi for two days at the invitation of Foreign Secretary Vinay Kwatra. The two foreign secretaries reviewed the entire spectrum of bilateral cooperation from the economic, commercial and development to culture and people-people relations. While they were preparing for these talks, on the eve of Paudyal’s visit, China pulled off a diplomatic coup in Kathmandu: a six-point agreement between visiting Chairman of China’s National People’s Congress, Li Zhanshau, and Speaker of Nepal’s Houe of Representatives, Agni Prasad Sapkota. This is expected to provide the basis for China-Nepal cooperation in multiple sectors and moving forward on projects under China’s Belt and Road Initiative (BRI). This unprecedented agreement is significant because India remains opposed to the BRI, but that has not deterred Nepal from signing up for it. The power play of the Asian giants in the neighbourhood is in full flow. Whether smaller countries like Sri Lanka and Nepal are getting the best of both India and China or losing out on the traditional and tested advantages of being in India’s “zone of influence” seems to be a moot question at this stage. You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

WION Spotlight | It’s India vs China in Nepal and Sri Lanka 

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