It is reported that the US $ 1 billion loan requested from the Indian government will be further delayed. The Sri Lankan government was hoping to get this $ 1 billion loan after borrowing $ 500 million last December.
The Government of India has informed the Government of Sri Lanka of certain conditions that must be met in order to obtain the relevant loan. It called for a roadmap on how to overcome the long-term economic crisis, as well as a list of economic and strategic activities to be implemented in the North and East.
India’s demands include a number of maritime security agreements strengthening India’s strategic interests in the East Trincomalee port. These include the Dornier surveillance aircraft for the Sri Lanka Air Force, a ship repair pool for the Sri Lanka Navy at Trincomalee and the deployment of a Sri Lanka Navy officer to the US Navy’s Intelligence Sharing Office in Bahrain.
It also includes the fight against international terrorism, drug trafficking and ensuring safe sea voyages for commercial vessels in the region.
Another condition of India is to give the opportunity to start a renewable energy project focusing on the Sampur area around Trincomalee.
The Government of India has stated that the loan will not be granted until these requests are met.
Basil Rajapaksa, the Minister of Finance was scheduled to visit India to hold discussions on obtaining the loan, but the visit had to be postponed on two occasions.
