India has sent two fuel consignments to Sri Lanka as the island nation is suffering through its worst economic crisis in decades. So far, India has supplied 270,000 tonnes of fuels to help ease the power crisis in Sri Lanka. Financial woes led to a shortage of fuels and power cuts.
Sri Lanka is facing its worst economic crisis since independence from Britain in 1948. The Sri Lankan rupee became the worst-performing currency as it depreciated against the dollar, while foreign debt mounted. India has announced $1 billion as a credit to Sri Lanka to help shore up the sinking economy.
Ratings agencies have warned that Sri Lanka’s $51 billion foreign debt could default. The tourism-dependent economy has been hit by the 2019 Easter bombings and the Covid-19 pandemic.
