India Open To Further $2 Billion Financial Assistance To Sri Lanka Amid Grave Economic Crisis In Island Nation: Report

India is likely to offer another $2 billion in financial assistance to Sri Lanka as the Island nation is hit by its worst economic crisis since independence in 1948.

New Delhi is also looking to support the neighbouring country with food and fuel assistance to help Colombo tide over its ongoing economic crisis.

“We are definitely looking to help them out and are willing to offer more swap lines and loans,” a source in the know of developments told the international news agency.

Another source from the government expressed concern over Sri Lanka’s earlier warning of defaulting on its debt payments. “We can still give them up to $2 billion in swaps and support,” the source added.

Sri Lanka is apparently seeking India’s support to pay back dues worth $2 billion. Loans taken from the likes of the Asian Clearing Union will reportedly be settled through New Delhi’s assistance.

Until now, India has already committed $1.9 billion to the island country in the forms of loans, credit lines and currency swaps.

Meanwhile, Sri Lanka has asked for further credit line of $500 million for fuel.

“We want them to reduce their debt levels from China and we want to become stronger partners,” a source in know of India’s thought process was quoted by Reuters.