India ships food aid to Sri Lanka as unrest in Colombo worsens

India kicked off its first major food aid to Sri Lanka this week since a credit line was established between the two South Asian nations recently. Nearly 40,000 tonnes of rice were shipped southwards, media reports suggest citing officials.

The news comes as Sri Lanka has been rattled with mass protests that resulted in a national emergency and a social media blackout. Food and fuel shortages on the island nation followed an economic crunch, which has reportedly been pinned on Sri Lankan President Gotabaya Rajapaksa.

Also Read: Fuel-filled ship reaches Sri Lankan coast, brings relief to crisis-hit island

Sri Lanka’s currency has also experienced a downward spiral in the last two years. A 70% drop was seen in the value, according to reports from Reuters.

Pattabhi Agro Foods will be supplying the grain to Sri Lanka under the Indian Credit Facility Agreement. B.V. Krishna Rao, the managing director of the organisation, said that the 40,000-tonne shipment is part of a deal that includes dispatching 300,000 tonnes of rice.

India vowed to assist Sri Lankan authorities as the demand for essential goods — fuel, medicine and food — went up and the supply diminished. A credit line, which was worth $1 billion, was established to help Sri Lanka recover from the crippling shortages.

Sri Lanka has huge debt obligations and dwindling foreign reserves, and its struggle to pay for imports has caused shortages. People wait in long lines for fuel, and power is cut for several hours daily because there’s not enough fuel to operate generating plants and dry weather that has sapped hydropower capacity.

Also Read: Crisis in Colombo: US envoy throws weight behind protestors

Sri Lanka’s economic woes are blamed on successive governments not diversifying exports and relying on traditional cash sources like tea, garments and tourism, and on a culture of consuming imported goods.

The COVID-19 pandemic dealt a heavy blow to Sri Lanka’s economy, with the government estimating a loss of $14 billion in the last two years.