Lagatar24 Desk
Washington, April 19: The International Monetary Fund’s (IMF) Managing Director, Kristalina Georgieva, praised India’s assistance to Sri Lanka in dealing with its economic problems on Monday, assuring Finance Minister Nirmala Sitharaman that the financial institution will continue to work with the island nation.
Georgieva made her statements with Sitharaman at the IMF-World Bank (WB) Spring Meetings in Washington, DC. Sitharaman and Georgieva expressed concern about the impact of recent geopolitical developments on the global economy, as well as the problems posed by rising oil prices.
Sri Lanka is experiencing its greatest economic crisis since independence, with food and fuel shortages, increasing prices, and power outages affecting a large number of people, sparking widespread protests against the government’s response.
The economic condition has sparked widespread protests, with Prime Minister Mahinda Rajapaksa and President Gotabaya Rajapaksa being called to quit. Georgieva also praised India on its successful COVID-19 vaccination campaign. According to the Ministry of Finance, she also thanked India for extending COVID-19 relief assistance to other poor countries. Georgieva praised India’s well-targeted policy mix for helping the Indian economy remain resilient, according to the Ministry.
Sitharaman emphasised India’s commitment to supporting economic growth through Capital Expenditure during her interaction with Georgieva. According to the ministry, India’s flexible fiscal policy, combined with large structural changes and robust monetary policies, has aided in the country’s post-pandemic economic recovery.
