Australia to lend further $25 million humanitarian aid to Sri Lanka amid deepening crisis

Australia will provide an additional $25 million to Sri Lanka to help the island nation address urgent food and healthcare needs, Australian Minister of Foreign Affairs Penny Wong has announced. The decision of Canberra comes as Sri Lanka continues to face its worst economic crisis. The announcement by Australian Minister of Foreign Affairs Penny Wong takes the country's official development assistance response to $75 million. 

"Australia will provide an additional $25 million to help Sri Lanka meet urgent food and healthcare needs, as it confronts its worst economic crisis in 70 years. During this challenging period, Australia stands with the people of Sri Lanka, especially those experiencing severe hardship," Penny Wong and Pat Conroy stated in the press release. 

In a joint press release,  Australian Minister of Foreign Affairs Penny Wong and Pat Conroy, Minister for International Development and the Pacific, stated that the support announced by the government will be delivered through UN agencies to provide food, health and nutrition services. In addition, people will be able to access safe water and essential support for those at risk with the help. Penny Wong and Pat Conroy noted that Australia's continued assistance to Sri Lanka supports mutual interest and strengthens the strong ties between the two nations based on cooperation and connection between people. Australia is also providing Sri Lanka with $23 million in ongoing development assistance in 2022-23. Notably, Sri Lanka's economic crisis has resulted in a price rise and a shortage of food, fuel and other essential services. 

Sri Lanka's Central Bank Chief expresses hope for agreement between IMF & govt 

Meanwhile, Sri Lanka's Central Bank chief Nandalal Weerasinghe has expressed hope that the government and International Monetary Fund (IMF) will reach a "staff-level agreement" on the policy package, according to AP. Weerasinghe further stated that the agreement they are seeking with the IMF will give them a "clear picture on debt sustainability" and fulfilling debt targets in the coming 10 years. He stressed that the government's agreement with IMF will help Sri Lanka to address sovereign bond holders and other creditors. In April, Sri Lanka announced suspending paying foreign loans and its total foreign debt stands at $51 billion. Earlier, Sri Lankan President Ranil Wickremesinghe said that the government has started negotiations with the IMF on a four-year rescue plan. 

Inputs from AP

Image: AP/Facebook/@RanilWickremesinghe