India surpasses China to emerge as top lender for crisis-trapped Sri Lanka

According to news agency ANI, quoting the Daily Financial Times, India has surpassed China as the largest bilateral lender, with a total of $968 million in loans in the first four months of 2022. China has been the top bilateral lender to Sri Lanka in the previous five years, disbursing $947 million, $809 million of which was obtained as market borrowings from the China Development Bank, according to the Daily Financial Times, citing public finance.lk.

Loan disbursement amount

According to the report, the Asian Development Bank (ADB) has been the largest multilateral lender during the last five years, disbursing $610 million in 2021. According to the Daily FT, India has disbursed $377 million and ADB has disbursed $360 million, accounting for 76% of total disbursements in the first four months of 2022. According to PTI, India's Permanent Representative to the United Nations Ruchira Kamboj stated that India had donated approximately $4 billion in food and financial support to Sri Lanka.

Kamboj was addressing at the United Nations General Assembly's Annual Joint Debate on the Reports of the Peace-building Commission (PBC) and the Peace-building Fund (PBF).

"In our immediate neighborhood, we have continued to assist our close friend and neighbor Sri Lanka in ensuring food security over the past few months by contributing approximately USD 4 billion in food and financial aid," Kamboj stated.

On August 22, India provided over 21,000 tonnes of fertilizer to neighboring Sri Lanka, which is in a state of distress. 

This was reinforced by 44,000 tonnes delivered last month as part of Indian assistance totaling approximately $4 billion in 2022.