Lagatar24 Desk
New Delhi, April 2: Indian traders have begun packing 40,000 tonnes of rice for immediate transport to Sri Lanka, the first big food aid since Colombo obtained a credit line from New Delhi, Reuters reported on Saturday.
The 22-million-strong Indian Ocean island nation is struggling to pay for basic imports after a 70% decline in foreign exchange reserves in two years prompted a currency devaluation and efforts to seek assistance from international lenders.
As Sri Lanka’s leadership prepares for negotiations with the International Monetary Fund over concerns about the country’s ability to repay foreign debt, fuel is in limited supply, food prices are skyrocketing, and protests have erupted.
India, the world’s largest rice exporter, agreed last month to give a $1 billion credit line to help alleviate critical shortages of fuel, food, and medication.
The rice imports could aid Colombo in lowering rice prices, which have more than doubled in a year, fueling anger.
Following violent protests over the country’s greatest economic crisis in decades, Sri Lankan President Gotabaya Rajapaksa imposed a statewide state of emergency late Friday.
The Indian assistance comes after successive Rajapaksa governments drew Sri Lanka closer to China over the last decade, causing concern in New Delhi.
