‘India saved us during financial crisis’

Expressing his gratitude to “trustworthy friend” India for saving Sri Lanka and preventing a “bloodbath” during its unprecedented economic crisis last year, Parliament Speaker Mahinda Yapa Abeywardena has said that not a single nation has extended that kind of assistance to Colombo as done by New Delhi.

Sri Lanka was hit by a catastrophic financial crisis in 2022, the worst since its independence from Britain in 1948, due to a severe paucity of foreign exchange reserves.

As the country struggled, locked in the throes of the crisis, India extended multi-pronged assistance of about $4 billion to it last year, through multiple credit lines and currency support, in line with India’s ‘Neighbourhood First’ policy.

In his address at the gala dinner reception hosted for delegates of the Indian Travel Congress, Abeywardena said India “saved us” during the financial crisis, otherwise, there would have been “another bloodbath for all of us.”

At the evening reception, he thanked India for the help extended to the cash-strapped nation and recalled the civilisational ties and similarities between the two countries and their cultures.

“Sri Lanka and India are very, very closely interconnected countries, culturally, nationally, and policy-wise, and above all, India has been a very close associate and trustworthy friend of Sri Lanka,” Abeywardena said, adding that when “we were in trouble”, India always helped out.

“And, even this time, today, I heard that India is willing to extend our restructuring of loans for 12 years. Never expected, and never in history, not a single country has extended that kind of assistance,” he said.

He recalled the helping hand lent by India during the period of trouble last year that devastated the Sri Lankan economy, pushing it into a debt crisis.

“I must tell you, during the trouble that we had last year, you (India) saved us, India saved us otherwise, there would have been another bloodbath for all of us. So, that is how India came to help us,” Abeywardena said.

He made the remarks in the presence of the Indian High Commissioner to Sri Lanka, Gopal Baglay, Sri Lanka’s Tourism and Lands Minister Harin Fernando, and other senior officials of the Sri Lankan government.

“Your ambassador here, (is a) very close friend of ours. We love and respect him,” the Speaker said, referring to Baglay.