United Nations has planned to provide humanitarian assistance of around $48 million over a four-month period to Sri Lanka. New Delhi’s financial assistance worth over $3 billion since January to provide essential items, including food, fuel, cooking gas and medicines. Sri Lanka needs $6 billion to keep the country afloat for the next six months, adding that $5 billion is required to ensure day-to-day living and another $1 billion to strengthen the Sri Lankan rupee.
Why this assistance given to Sri lanka?
Sri Lanka is nearly bankrupt, having suspended repayment of its foreign loans. Its foreign reserves are almost spent, which has limited imports and caused serious shortages of essential items including food, medicine, fuel and cooking gas. It is due to repay $7 billion this year of the $25 billion in foreign loans it is scheduled to pay by 2026. Sri Lanka’s total foreign debt is $51 billion.
Important takeaways for all competitive exams:
- Sri Lanka Capital: Jayawardenepura Kotte;
- Sri Lanka Currency: Sri Lankan Rupee;
- Sri Lanka Prime Minister: Ranil Wickremesinghe;
- Sri Lanka President: Gotabaya Rajapaksa.