Piyush Goyal discusses economic recovery with Sri Lankan envoy Moragoda

Minister of Commerce and Industry, Piyush Goyal on Tuesday met Sri Lanka's High Commissioner Milinda Moragoda and discussed support for economic recovery through bilateral trade expansion.

During the discussion between Minister Goyal and High Commissioner Moragoda, which was held in a very cordial manner, a wide range of issues pertaining to the areas of bilateral trade and commerce, particularly aiming at the economic recovery in Sri Lanka, was discussed, read High Commission of Sri Lanka press release.

Mechanisms relating to the expansion of bilateral trade, the ways to establish and promote rupee trade between Sri Lanka and India as a means of economic recovery in Sri Lanka, and the possibility of further bilateral integration in the textiles and garment sector were among the key issues discussed between the Indian Commerce Minister and the Sri Lankan High Commissioner.

Moragoda thanked India for the unprecedented support that it has extended to Sri Lanka to mitigate the negative impact of the economic crisis.

Recalling India's timely issuance of financial assurances to the IMF, the first creditor to do so, High Commissioner Moragoda emphasized the key role that India could play in the recovery phase of the Sri Lankan economy, added the press release.

India sent financing assurances to the International Monetary Fund (IMF), becoming the first of Sri Lanka's creditors to officially back the crisis-hit island nation's debt restructuring programme.

This takes Sri Lanka one step closer to getting a crucial USD 2.9-billion package from the IMF, made contingent on "receiving financing assurances from Sri Lanka's official creditors and making a good faith effort to reach a collaborative agreement with private creditors."

Notably, China, Japan, and India are Sri Lanka's three largest bilateral lenders.

External Affairs Minister S Jaishankar in January visited Sri Lanka and said that India is committed to increase investment flows to Sri Lanka to hasten its economic recovery.

During his visit, India and Sri Lanka discussed cooperation in infrastructure, connectivity, energy, industry and health.

Jaishankar's visit to the island nation came at a crucial time as Sri Lanka has been making efforts to obtain an extended fund facility from International Monetary Fund.