The Group of Seven economic powers support efforts to provide debt relief for Sri Lanka, G7 finance chiefs said on Thursday in a draft communique from a meeting in Germany after the country defaulted on its sovereign debt.

The once-booming island country has suspended debt payments as it grapples with its worst economic crisis since it won independence in 1948, facing shortages of essential goods that have triggered social unrest.

G7 countries said in their statement they were committed to finding long-term solutions for the Indian Ocean nation and urged it to “negotiate constructively” with the International Monetary Fund on a potential loan programme.

“The G7 stands ready to support the Paris Club’s efforts, in line with its principles, to address the need for a debt treatment for Sri Lanka,” they said, referring to the group of mostly rich creditor nations.

The draft statement, which is to be finalised before the end the G7finance ministers’ meeting on Friday, also called on other big creditor nations not in the Paris Club to coordinate with the group and urged them to provide debt relief on comparable terms.

G7 finance chiefs also singled out China, which has become a major creditor to low-income countries, to actively contribute to debt relief for such countries.

Chad, Ethiopia and Zambia have so far sought debt relief under a new G20 common framework, but progress has so far been slow with some officials accusing China of dragging its feet.

The Reserve Bank of India said that India’s trade transactions with Sri Lanka, falling under a recent credit facility agreement with Sri Lanka, may be settled in INR outside the Asian Clearing Union (ACU) arrangement mechanism.

The decision was taken in view of the difficulties being experienced by exporters in receipt of export proceeds from Sri Lanka and the State Bank of India’s credit facility agreement dated March 17, 2022 with the Government of Sri Lanka.

The sanction was given by the Government of India guaranteed USD 1000 million term loan to Sri lanka for financing purchase of essential goods by Sri Lanka from India.

Under the arrangement, financing of export of eligible goods and services from India, as defined under the agreement, would be allowed subject to their being eligible for export under the Foreign Trade Policy of the Government of India and whose purchase may be agreed to be financed by SBI under this agreement.

India recently extended this  $1 billion credit facility to Sri Lanka which is in the midst of a severe economic crisis triggered by a shortage of foreign exchange.

The “short term concessional loan facility” will be provided by State Bank of India, under an agreement signed between the two governments 

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“Neighborhood first. India stands with Sri Lanka. US$ 1 billion credit line signed for supply of essential commodities. Key element of the package of support extended by India,” Jaishankar tweeted.

The assistance is to enable Sri Lanka to import food, other essential commodities and medicines from India, and was described by an Indian official as a “humanitarian measure to help the Sri Lankan people during a difficult time”

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With this, Delhi has provided a total financial assistance of $2.4 billion to Sri Lanka since January, but this will only partially help mitigate the country’s economic meltdown.

A media release from the Sri Lankan High Commission in Delhi said the two sides have agreed to set up a framework for “short, medium and long-term economic cooperation between the two countries, aimed at addressing Sri Lanka’s present economic challenges”

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Along with India’s emergency financial assistance, Delhi has also conveyed to Colombo that Indian investments in renewable energy, ports, logistics, infrastructure and connectivity will help Sri Lanka build capacity “holistically”, repairing its economy.

17^th May 2022

Photo caption:

1. New Anthoney’s Farms Chairman/Co-Founder Emil Stanley (L) and CEO Neil Suraweera

With the view of ensuring consumers continue to enjoy their favorite chicken brand, New Anthoney’s Farms (Private) Ltd, a name synonymous with the domestic poultry sector recently reaffirmed its position to provide adequate and uninterrupted supply of its meat range amidst feed shortages and the growing challenges facing Sri Lanka’s economy.

The poultry industry speculates production to contract by one-fifth this year primarily due to the surging feed costs as import of the raw materials for feed is raising alarm because of the impending dollar shortage, resulting in access and availability of good quality and nutritious feed becoming scarce.

‘We are closely monitoring the current situation and engaging with key stakeholders to take proactive and timely measures in encountering the various challenges imposed. This is a time where collaboration plays a crucial role in getting the poultry industry back on its feet and strengthening its ecosystem and value chain,’ commented Emil Stanley, Chairman/Co-Founder of New Anthoney’s Farms.

The Haritha Hari concept at New Anthoney’s Farms is an all-natural process that is nutrient-rich and free from any antibiotic or hormones including its feed completely made of natural ingredients. It follows strict biological measures and farming practices, adhering to animal welfare standards in line with that of the National Chicken Council, USA. It was also the first and only poultry producer in Sri Lanka to embrace biodegradable measures in their food packaging process.

In the last two years despite the unprecedented pandemic, New Anthoney’s Farms made a bold move to establish its presence globally, yielding orders from some of the key international markets for its Anthoney’s and NoBiotic Chicken brands and achieving an export income of USD 1.5 million for the year 2021/22. This has enabled the company to also bring in the much-required forex into the country. 

‘We have expanded our state-of-the-art production facilities in the recent years to cater to the increasing demand locally and internationally. We have put together a well-defined export strategy with the aim of becoming one of the leading meat exporters in Sri Lanka renowned for its world-class green standards and sustainable practices,’ added CEO Neil Suraweera. 

Chicken is undoubtedly one of the most widely consumed meat products across the world, enjoyed by Sri Lankan households in their everyday cooking and New Anthoney’s Farms takes great pride in being a part of it. The company is GMP, HACCP, and ISO 22000 certified with local and international halal accreditations and the only poultry producer in Sri Lanka to receive the Greenhouse Gas (GHG) Verification Statement from Control Union in accordance with the ISO 14064-1:2018 standards. 

KOENIGSWINTER, Germany, May 19 (Reuters) – The Group of Seven economic powers support efforts to provide debt relief for Sri Lanka, G7 finance chiefs said on Thursday in a draft communique from a meeting in Germany after the country defaulted on its sovereign debt.

The once-booming island country has suspended debt payments as it grapples with its worst economic crisis since it won independence in 1948, facing shortages of essential goods that have triggered social unrest.

G7 countries said in their statement they were committed to finding long-term solutions for the Indian Ocean nation and urged it to “negotiate constructively” with the International Monetary Fund on a potential loan programme.

“The G7 stands ready to support the Paris Club’s efforts, in line with its principles, to address the need for a debt treatment for Sri Lanka,” they said, referring to the group of mostly rich creditor nations.

The draft statement, which is to be finalised before the end the G7finance ministers’ meeting on Friday, also called on other big creditor nations not in the Paris Club to coordinate with the group and urged them to provide debt relief on comparable terms.

G7 finance chiefs also singled out China, which has become a major creditor to low-income countries, to actively contribute to debt relief for such countries.

Chad, Ethiopia and Zambia have so far sought debt relief under a new G20 common framework, but progress has so far been slow with some officials accusing China of dragging its feet.

THE REUTERS