India to support Sri Lanka through ‘long-term’ investments

After giving nearly $4 billion of financial help, India said on Tuesday that it will support Sri Lanka through long-term investments. Sri Lanka had recently faced its worst economic crisis in more than seven decades. In a statement, the High Commission of India in Sri Lanka said India will keep supporting its neighbouring country for its economic recovery and growth.

The High Commission of India in Sri Lanka said, "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."

As compared with the April-June quarter last year, Sri Lanka's economy contracted 8.4 per cent, according to data from the government statistics department, amid concerns over the country's ongoing financial situation.

Department of Census and Statistics of Sri Lanka stated in a communique, "The year-on-year GDP growth rate for the second quarter of 2022 has been estimated as 8.4 per cent of negative growth rate, against the value reported in the same quarter in the year 2021.”

Sri Lanka faced its worst economic crisis in nearly 70 years, which resulted in an acute shortage of essential items like food, medicine, cooking gas and fuel across the island nation. The island nation witnessed its growth contract by 1.6 per cent during the first quarter of 2022.

In April-June quarter, their economy contracted by 8.4 per cent.

The Department of Census and Statistics also stated that agriculture shrank by 8.4 per cent in the second quarter and industries by 10 per cent, while services shrank by 2.2 per cent, as compared to the same period a year ago.

"In addition, the Gross Domestic Product for Sri Lanka for the second quarter of 2022 at the current price has increased up to Rs. 5,374,716 million from Rs. 4,032,171 million which was recorded in the same quarter in year 2021 registering 33.3 percent of positive change in the current price GDP," the data shows.