Sri Lanka's $1 bn debt restructured by IMF

11 Aug 2023 CW Team

Sri Lanka's financial distress is prompting a comprehensive approach to its debt burden. The International Monetary Fund (IMF) is leading a restructuring program, targeting more than $1 billion in debt owed to India. This debt is a component of India's Line of Credit, which supported Sri Lanka's infrastructure development, encompassing roads, energy, water, and housing projects.

Presently, India's exposure to Sri Lanka amounts to around $3 billion. As part of the restructuring, potential debt "haircuts" for international lenders are being explored, although specific details are yet to be finalised. N. Ramesh, Deputy Managing Director of EXIM Bank of India, stated that various options are being considered, such as reducing principal amounts or extending repayment periods.

The IMF-approved extended arrangement, totaling $3 billion, serves to bolster Sri Lanka's economic policies and reforms over a 48-month period. With Sri Lanka's total foreign debt, including India's, at $41.5 billion, this restructuring initiative is a pivotal step toward stabilising the nation's financial outlook.

India remains committed to assisting Sri Lanka's economic development, particularly in enhancing transportation networks. Despite the challenges, cooperation endures between the two neighbouring countries. As Sri Lanka advances its domestic debt restructuring, the path is being paved for addressing obligations owed to foreign creditors. The completion of this restructuring process is anticipated by September, marking a significant stride toward financial recovery.

Infrastructure Transport

06 Feb 2026

Second Mountain Tunnel Breakthrough in Palghar Advances High Speed Rail

The Mumbai-Ahmedabad high speed rail (MAHSR) project reached a milestone with the breakthrough of a mountain tunnel in Palghar, Maharashtra. Mountain tunnel MT-six measures 454 metres long and 14.4 metres wide and will accommodate up and down tracks. The breakthrough follows MT-five near Saphale on second January 2026 and the MT-six excavation was completed from both ends using the New Austrian Tunnelling Method. The ministry reported that the tunnelling was completed within 12 months. The New Austrian Tunnelling Method is favoured for its flexibility in complex geology and irregular tunnel s..

Modi Government Pushes Atmanirbhar Container Drive With BCSL MoU

The Union Government advanced a plan to create an integrated, domestically anchored container ecosystem with the signing of a Memorandum of Understanding to establish the Bharat Container Shipping Line (BCSL). The MoU was signed by key agencies including the Shipping Corporation of India and Container Corporation of India alongside major port authorities and Sagarmala Finance Corporation Limited under the Ministry of Ports, Shipping and Waterways, in the presence of senior ministers. The initiative aligns with the Container Manufacturing Assistance Scheme announced in the Union Budget 2026–2..

Ministry Reports Gains In Mobility For Marginalised Communities

The Ministry of Social Justice and Empowerment is implementing skill development, education and rehabilitation schemes to promote socio-economic mobility and sustainable livelihoods for marginalised and disadvantaged communities across the country. Programmes target Scheduled Castes, Other Backward Classes, Economically Weaker Sections, De-notified Tribes and Safai Karamcharis through specialised implementing corporations and empanelled training institutes. Pradhan Mantri Dakshata Aur Kushalta Sampann Hitgrahi Yojana, or PM-DAKSH, provided skill training and placement support through the Nati..