Reuters reports that India has already given Sri Lanka roughly $4 billion this year.
An Indian government source with intimate knowledge of Sri Lankan deliberations stated India determined so as Sri Lanka’s economy stabilises after a preliminary loan agreement with the IMF (IMF).
India has been Sri Lanka’s top donor this year, despite the country’s worsening economic woes.
“We’ve contributed $3.8 billion. Now it’s IMF time. The Indian official warned countries can’t keep helping.
A Sri Lankan government source claimed India’s decision was not a surprise and that New Delhi “signalled” months ago that there would be little more large-scale support.
Sri Lanka plans to hold a donor meeting with Japan, China, and maybe South Korea later this year, according to a source.
Sri Lanka and the IMF struck a preliminary agreement for a $2.9 billion loan in early September, pending financial assurances from state creditors and private creditor discussions.
