Sri Lankan envoy, Sitharaman hold talks on financial assistance

NEW DELHI: Milinda Moragoda the Sri Lankan High Commissioner met with the Finance Minister Nirmala Sitharaman on Friday to discuss the possibility of India increasing the financial assistance that the country is currently providing Sri Lanka, as the country deals will an extreme economic crisis.

Moragoda has said in the meeting that until negotiations with the IMF can be finalized regarding the economic adjustment programme, Sri Lanka would require "bridging finance" from India.

"In this context, the minister and the High Commissioner explored the possibility of increasing and restructuring the assistance provided by India in the form of credits for essential commodities and fuel as well as the balance of payment support," the Sri Lankan High Commission said in a statement.

The Indian FM and high commission during their meeting, assessed the condition of the current economic cooperation, and also spoke about ways that this can be taken forward, the New Indian Express reported.

"High Commissioner Moragoda thanked Minister Sitharaman for the continuation of assistance that India is extending to Sri Lanka in the form of credits for essential commodities and fuel, and also for the balance of payment support," the mission said.

"He particularly appreciated her taking up the case of Sri Lanka on the sidelines of the IMF Spring Meetings in April in Washington DC, with the IMF, other multilateral institutions and bilateral development partners," it added.

During meeting that took place when Sri Lanka is struggling amidst growing protest in the country over the economic collapse, the Finance minister was briefed on the situation on the ground, and newer developments too.