Posted on May 1st, 2022

Insight By Sunil Kumar 

As the crisis in Sri Lanka deepens with no viable resolution in sight and the nation and all concerned, clamors on probably very justifiably that the present Administration needs to be removed post haste the following shocking revelation has emerged.

 It portrays the rank disregard by the legislators in charge of  Administrating the country to prioritize the outstanding needs of an  imperiled country by the very same people who are accused of having  initiated it through mismanagement and corruption as the hue and cry  continues and this is a clear cut example of what they are doing and  the irresponsibility related.

 There is a second line of credit from India expected shortly and many wonder where that will end up as the more skeptical cry out “Surely it will be misdirected again and  we’re afraid to think where most of it could end up !! ” and one can only wonder in perplexed disbelief that the Administration is still hanging on to power regardless of what the outcome might be in the long run  and also feel the reality of the anguish in Sri Lanka today.


Business Times Report

 by Bandula Sirimanne

 Despite the guidelines issued for the use of a short term US$1 billion  Indian line of credit solely for the procurement of food items and  medicines, Sri Lanka is planning to use these funds to import steel  from India, reliable official sources said.

  A sum of $250 million has already been spent from this loan facility  and a part of the balance $750 million is to be used for the steel  imports.

 Several economists expressed concern at this move when the country is  in urgent need of food items, medicine, essential commodities, fuel, LP gas and  even much needed foreign exchange  by the suffering masses.

 India is extending extra lines of credit to Sri Lanka in a bid to keep  bilateral trade between the two countries intact and maintain its  business interests alive even amidst the country’s worst economic  downturn.

 It has been revealed that several ruling party business dealers with  high political connections were behind the steel deal under the cover  of expediting the construction work of mixed development projects even  during the difficult period.

 Preliminary negotiations were held with State Bank of India to obtain  necessary funds from the credit line for the procurement of steel> necessary for the construction work of several ongoing mixed development projects, during former Finance Minister Basil Rajapaksa’s tenure in office.

 Sri Lanka will be receiving another Indian line of credit amounting to

 $500 million to Sri Lanka for urgent fuel imports. India has provided  financial assistance to the tune of $2.4 billion in the last three  months to Sri Lanka, which includes a $400 billion reserve Bank of  India (RBI) currency swap, deferral of a $500 million loan and a  $1.5-billion credit line for importing essential commodities including  fuel, food and medicines.

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