Colombo: Sri Lanka used the first tranche of $330 million loan from the IMF to repay India’s debt. State Finance Minister Ranjit Siyambalapitiya told the media that $120 million was used to repay the loan taken from India. The Minister of State said that in the recent past, India had given loans to his country for the import of essential commodities including medicine and fuel. Part of this loan was to be settled on Thursday, which we did on the same day. He said that it is important that we follow the deadline for repaying the loan.
After the economic crisis hit the country and Sri Lanka was unable to pay its debts. In April last year, India provided financial assistance of over $4 billion to Sri Lanka. India was also one of the first countries to help the same southern neighbor get an IMF bailout. The IMF has agreed to give a conditional loan to Lanka, which will be repaid within a period of 48 months.
Significantly, last year people took to the streets in long queues to buy food, fuel and medicine with the country facing shortage of essential commodities. The public outcry forced President Gotabaya Rajapaksa to flee the country. After that Ranil Wickremesinghe took over the command of the country.
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