Polls won’t impede Indo-Lanka talks on ‘financial measures’ to save SL economy

By Shamindra Ferdinando

The upcoming general election will not impede ongoing talks between India and Sri Lanka on re-scheduling of bilateral debt repayment, according to authoritative sources.

Asked whether a consensus could be reached before the general election, sources answered in the negative. They, however, explained that relevant officials were continuing deliberations in that regard.

Indian and Sri Lankan officials held a video conference on July 22 to discuss re-scheduling of bilateral debt repayment.

 The Indian delegation consisted of senior External Affairs, Finance, and the EXIM Bank officials whereas Sri Lanka was represented by the Department of External Resources.

Talks followed President Gotabaya Rajapaksa and Premier Mahinda Rajapaksa, who is also the Finance Minister having telephone conversations with Indian leader Narendra Modi, on May 23 and 27, respectively. Subsequently, Indian High Commissioner Gopal Baglay again took up the matter on May 29 leading to the Indian High Commission in Colombo engaging the government to pave the way for talks on re-scheduling of bilateral debt repayment.

 The next round of technical discussions between the two sides on rescheduling of debt repayment is expected to be held soon though not before the election.

 Earlier President Gotabaya Rajapaksa said that the economy was in dire straits due to major revenue sources, namely garment exports, foreign remittances and tourism being badly affected as a result of corona epidemic.

 Sources said that in addition to the re-scheduling of debt repayment, Sri Lanka had sought 1.1 billion USD under the SWAP facility to top up the USD 400 million SAARC facility to assist Sri Lanka in overcoming its foreign exchange crisis. Sources said that USD 400 mn facility had been finalized whereas discussions were yet to take place as regards the USD 1.1 bn currency swap facility. Discussions were expected after the general election.

Responding to another query, sources said that once the election was concluded talks on re-scheduling of debt repayment and USD 1.1 bn currency swap facility could take place.

 Asked for the Samagi Jana Balavegaya’s response to ongoing talks with India, SJB Colombo District candidate Dr. Harsha de Silva said: “We will certainly work with all our friends around the world to see how they could help us. We will continue all negotiations and we are confident we could arrive at solutions that would help us tide over the difficulties.”