Former Deputy Governor of the Central Bank of Sri Lanka W. A. Wijewardene has said that the US $ 1 billion loan facility from India will provide some temporary relief to Sri Lanka’s economic crisis.
Such a short-term loan facility is like taking a loan in exchange and it is like a patient taking a paracetamol pill to temporarily reduce the fever, Mr. Wijewardene said.
He also said that Sri Lanka would not receive money from the $ 1 billion loan facility from India and that it would only receive Indian goods.
Accordingly, Sri Lanka will be able to obtain US $ 1 billion worth of essential food and medicine stocks in the future and will have to repay the loan within a short period of time, Wijewardene said.
The former deputy governor also said that instead of getting such a short-term loan facility, what should be done is to get a long-term loan and provide some relief to the economic crisis.