India to stop providing further financial aid to crisis-hit Sri Lanka? Indian embassy reacts

New Delhi, Sep 20: Rubbishing the recent reports claiming that it would not provide financial aid to Sri Lanka any more, India on Tuesday said it will continue to extend support to crisis-hit Sri Lanka in "all possible ways" and particularly by promoting "long-term investments."

The response came from the embassy in Sri Lanka in the wake of reports which claimed that it will not provide further financial support to the island nation on top of the nearly USD 4 billion it has extended this year.

"We would like to emphasise that India has extended unprecedented bilateral assistance amounting close to USD 4 billion this year for ameliorating the difficulties faced by the people of Sri Lanka. India has also advocated to other bilateral and multilateral partners supporting Sri Lanka expeditiously in its current economic difficulties," the Indian High Commission said in a statement.

Responding to a report that India would no longer extend economic support to Sri Lanka, the High Commission stated, "We continue to be supportive of Sri Lanka in all possible ways, in particular by promoting long-term investments from India in key economic sectors in Sri Lanka for its early economic recovery and growth."

"Our bilateral development cooperation projects in Sri Lanka, which cumulatively total about USD 3.5 billion, are ongoing. Sri Lankans also continue to avail of scholarships for higher education and skills training in premier Indian institutions. These aspects of our close and long-standing cooperation with Sri Lanka also contribute to the efforts for addressing Sri Lanka's current economic difficulties," it said.

India has been the biggest provider of aid this year to its southern neighbour, which is fighting its worst economic crisis in more than seven decades and struggling to pay for imports.