×

UPSC Courses

DNA banner

DAILY NEWS ANALYSIS

  • 13 April, 2021

  • 4 Min Read

China – Sri Lanka relations

China – Sri Lanka relations

  • China on Monday signed a $500 million loan agreement with Sri Lanka, in a move that Colombo hopes would boost its foreign reserves that are under severe strain since the pandemic struck last year.
  • This is the second instalment of the $1 billion loan sought by Sri Lanka last year. The first was released in March 2020, just as the pandemic hit Sri Lanka.
  • The approval comes a month after Sri Lanka obtained a currency swap facility from China for $1.5 billion. Meanwhile, the Beijing-based Asian Infrastructure Investment Bank (AIIB) also sanctioned Sri Lanka’s request for a $180 million loan in February. Sri Lanka already owes more than $ 5 billion to China from past loans.
  • Sri Lanka, like many pandemic-hit countries, is facing an acute economic crisis for over a year now, with its rupee plummeting to nearly 203 against the U.S. dollar.
  • The country’s foreign reserves dropped to $ 4.05 billion in March this year, after its exports and tourism sector earnings, and foreign remittances dropped considerably in the last 12 months.
  • Sri Lanka is due to repaying some $ 4.5 billion of its outstanding debt this year and the government has said it is “exploring all options”.
  • India extended a $400 million swap facility through the Reserve Bank of India and provided a three-month rollover, but the facility was not further extended. The Central Bank of Sri Lanka settled the swap in February this year.
  • Meanwhile, Colombo is awaiting New Delhi’s response to two requests made last year by the government.
  • While PM Mahinda Rajapaksa sought a debt moratorium on the debt Sri Lanka owes India, President Gotabaya Rajapaksa requested Prime Minister Modi for a $ 1 billion currency swap last year. Neither request has been cleared by New Delhi as yet.

Source: TH


Same-sex Marriage under the Special Marriage Act, 1954

Same-sex Marriage under the Special Marriage Act, 1954 In response to a petition filed by two gay couples seeking recognition of same-sex marriage under the Special Marriage Act of 1954, the Supreme Court has served notice to the Indian Government and Attorney General. A two-judge panel led by Chief Justice of India D Y Chandrachud issued t

Periodic Labour Force Survey 2022

Periodic Labour Force Survey 2022 The Periodic Labour Force Survey (PLFS) was just released by the National Statistical Office (NSO). In metropolitan areas, the unemployment rate decreased from 9.8% in July-September 2021 to 7.2% in July-September 2022. What are the main conclusions of the PLFS (July–September 2022)? Unemp

CITES COP19

CITES COP19 The Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) is holding its 19th Conference of the Parties (CoP19) meeting in Panama City. A second name for CoP19 is the World Wildlife Conference. What were the Conference's High Points? 52 suggestions that would change the laws gover

Prevention of Cruelty to Animal Act

Prevention of Cruelty to Animal Act The Union Government recently proposed 61 amendments to the Prevention of Cruelty to Animals Act 1960. More on the news The Ministry of Fisheries, Animal Husbandry, and Dairy has prepared the draught Prevention of Cruelty to Animals Act, (Amendment) Bill-2022. The following are the draft's ke

Dispute on the Assam-Meghalaya Border

Dispute on the Assam-Meghalaya Border The killing of six people in an Assam police shooting comes ahead of the second phase of talks between the two states to resolve their boundary dispute, and there are fears that it will cast a long shadow over the talks. Background During the British colonial era, undivided Assam included moder

Toppers

Search By Date

Newsletter Subscription
SMS Alerts