‘India is the greatest…’: Sri Lankan minister on economic reforms in island nation
Sri Lanka on Friday thanked India for its efforts to help the island nation overcome the economic crisis last year. Sri Lankan Foreign Minister MUM Ali Sabri said that all other countries together have not done what India did for their country.
“India is the biggest partner in our recovery and stabilisation. I think all other countries together have not done what India did for us. The US$ 3.9 billion line of credit gave us a lifeline to fight another day. We are very grateful to India”, ANI quoted the minister as saying.
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The minister also spoke on the current situation in Sri Lanka and said that inflation is under control and the local currency has stabilised. “Sri Lanka has come a long way since the collapse of last May-June. Our inflation is under control, the rupee has stabilised, queues are no more, tourism has bounced back and Sri Lankans have started sending their money back through normal channels”, Sabri said.
“This is the foundation of stability and with this we are looking forward to the IMF EFF event by the end of this month. So, I think we are back on the path of recovery.
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On Friday, Colombo raised borrowing costs for the first time in five meetings to stem inflation as it seeks a $2.9 billion International Monetary Fund (IMF) loan to keep its economy stable, Bloomberg reported. .
Sri Lanka’s central bank raised the fixed lending rate by 100 basis points to 16.5 percent. “There have been some differences of opinion between CBSL and IMF staff on the inflation outlook,” the central bank said in a statement.