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Reuters
Reuters
Business
By Uditha Jayasinghe and Devjyot Ghoshal

India makes inroads into Sri Lanka under China's long shadow

FILE PHOTO: Drivers push auto rickshaws in a line to buy petrol from a fuel station amid Sri Lanka's economic crisis, in Colombo, Sri Lanka, July 29, 2022. REUTERS/Kim Kyung-Hoon/File Photo

When Sri Lanka slid into its worst economic crisis in seven decades leading to deadly riots and alarming shortages of fuel, food and medicines earlier this year, its giant northern neighbour stepped into the breach.

India provided about $4 billion in rapid assistance between January and July, including credit lines, a currency swap arrangement and deferred import payments, and sent a warship carrying essential drugs for the island's 22 million people.

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