2022
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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USD 800 million
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USD 900 million
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USD 500 million
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USD 700 million
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Detailed explanation-1: -India grants financial assistance of over USD 900 million to Sri Lanka to overcome forex crisis. Sri Lanka is currently experiencing a shortage of almost all essentials due to a shortage of dollars to pay for the imports.
Detailed explanation-2: -India has emerged as the top lender to Sri Lanka in 2022, disbursing USD 377 million in loans to the island nation as it grappled with an unprecedented political crisis and economic turmoil, according to the Verite Research think-tank.
Detailed explanation-3: -ECONOMYNEXT – Sri Lanka ended 2022 with gross forex reserves of 1,896 million dollars, up from 1,804 million US dollars in November, amid high interest rates which has allowed the central bank to halt money printing.
Detailed explanation-4: -Officially, reserves hover at $1.7 billion, but this includes a $1.4 billion swap from the People’s Bank of China that cannot be tapped because of restrictive conditions.
Detailed explanation-5: -In January 2022, India announced a USD 900 million loan to Sri Lanka to build up its depleted foreign reserves as the financial crisis began to unfold. Later, it offered a USD 500 million credit line to Sri Lanka to fund the country’s fuel purchases.