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  • Home
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  • DAILY CURRENT AFFAIRS:India approves giving 65,000 metric tonnes of urea to Sri Lanka

India approves giving 65,000 metric tonnes of urea to Sri Lanka

Tags: National News

India has once again extended a helping hand amid the ongoing devastating economic crisis in Sri Lanka. The central government has decided to supply 65,000 metric tonnes of urea to the island nation.

Chemical fertilisers were banned in Sri Lanka:

  • In the year 2021, the government completely banned all fertiliser imports and declared Sri Lanka to be a 100% organic farming country.

  • This move towards organic manures seriously affected food production.

  • Sri Lanka's president declared an economic emergency in the country to control rising food prices, continued depreciation of the currency, and rapidly depleting foreign exchange reserves.

  • Shortage of foreign exchange, as well as disastrous restrictions on chemical fertilisers and pesticides, pushed up food prices. Inflation levels currently exceed 15% and are projected to average 17.5%, putting millions of poor Sri Lankans in a state of dire straits.

  • However, due to the sudden economic crisis coupled with inadequate supply of organic fertilisers, the agricultural production there has suffered a lot, after which this decision has been taken.

India's aid to Sri Lanka:

  • India has been providing significant economic aid since January 2022 to the neighbouring island-nation, which is battling a severe dollar crisis that could lead to a 'sovereign default' and a severe shortage of essential commodities in the import-dependent country.

  • Over $1.4 billion in relief has been provided by India since the beginning of 2022, including a $400 'currency swap', a $500 loan moratorium, and a $500 'line of credit' for fuel imports.

  • Along with this, recently, India has also provided a $1 billion short-term concessional loan to Sri Lanka, which is facing an unprecedented economic crisis.

  • India has promised to provide more than 300 crores under the line of credit to Sri Lanka from the beginning of the year. India has also expressed its willingness to work with the new government of Sri Lanka.

Ranil Wickremesinghe was appointed Prime Minister of Sri Lanka for a record sixth term amid political turmoil.

Currently, Sri Lanka is facing its worst economic crisis since independence. There are violent demonstrations almost every day due to shortage of food and fuel, rising prices and power cuts.

Sri Lanka :

Capital : Colombo, second capital "Sri Jayvardhan Pura Kote"

Currency : Sri Lankan Rupee

President: Gotabaya Rajapakse

Prime Minister: Ranil Wickremesinghe

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