India is keeping a close watch on the evolving economic situation and other developments in the island nation and is ready to continue working in its rapid post-Covid economic recovery, according to the Ministry of External Affairs.

New Delhi has already extended support of about $2.5 billion, mostly in the area of fuel and food, in the past three months to crisis-torn Sri Lanka,

“Since mid-March, over 2,70,000 metric tonnes of diesel and petrol have been delivered to Sri Lanka. In addition, around 40,000 tonnes of rice have been supplied under the recently extended $1 billion credit facility to Sri Lanka,” said MEA Spokesperson Arindam Bagchi at a press briefing on Thursday.

Bagchi also confirmed that MEA Minister S Jaishankar and Defence Minister Rajnath Singh will be in Washington next week to attend the India-US 2+2 dialogue on April 11-12.

Relationship between India and Sri Lanka is rooted in shared civilisational values and aspirations and its cooperation based on commonality and interests, Bagchi said, adding that, the relationship has been strengthened in recent months. “We see the recent developments in this perspective and stand ready to continue working with Sri Lanka for rapid post-Covid economic recovery in line with India’s ‘Neighbourhood First’ policy, said Bagchi.

Sri Lanka is facing a severe economic crisis with food, fuel and power shortages hitting the daily lives of people. The country’s economy has taken a severe hit since the on-set of the Covid-19 pandemic as it affected tourism. With a depletion in its foreign exchange reserve and the immediate problem of restructuring of a $1 billion sovereign debt due for payment in July, Sri Lanka’s problems are on the rise.

Elaboration on the India-US 2+2 dialogue, Bagchi said that both countries will carry out a comprehensive review of cross-cutting issues on foreign policy and defence & security with objective of providing strategic guidance & vision for further consolidating the relationship. The US side will be led by US Secretary of State Antony Blinken and Defence Minister Lloyd Austin.

“The EAM will also separately meet his US counterpart Secretary Antony Blinken. EAM is also scheduled to meet senior members of the US admn to further advance the India-US comprehensive global strategic partnership,” the Spokesperson added.

On India’s economic relationship with Russia given the continued violence and killings in Ukraine, Bagchi said that India has established economic relations with Russia and its focus was now on stabilising these relations in the current circumstances.

“Energy flows to Europe are continuing, fertiliser purchasing have been insulated, there are such other examples also. I think I will rely on what EAM said - political colouring should not be attributed to our actions,” he added.

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