China to provide 300mn yuan loan to Lanka amid crisis

China has decided to provide a loan of 300 million yuan to Sri Lanka amidst the unprecedented economic crisis in the island nation The total amount of emergency grants provided by China has increased to 500 million Chinese Yuan, which is USD 76 million.

The Chinese Embassy in Sri Lanka, in a tweet, said that to “support Sri Lankan people at this trying times, China has decided to provide another 300 million RMB of aid to Sri Lanka for the urgently needed drugs, food and fuels etc., which increases the total emergency grant from China to 500 million RMB (approximately 76 million USD).”

Currently, Sri Lanka is grappling with food and electricity shortages, affecting many people. Such an economic crisis has forced Sri Lanka to seek help from its neighboring countries to provide them with basic amenities.

While Sri Lanka faces its worst economic crisis since independence, many believe that China's “debt-trap diplomacy” is behind the crisis. China has always kept its interests at the forefront and used the small nations as its pawn, be it Sri Lanka or the Maldives. Beijing is known for selling a dream of a fast-growing economy and then trapping these countries into debt diplomacy, according to reports

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Low income families to get cash to tide over crisis

The Sri Lankan government on Tuesday announced that it will provide cash allowances ranging between Rs 3,000 and Rs 7,500 to low income families “severely affected” by the current economic crisis in the country. The decision was taken in a Cabinet meeting held on Monday. World Bank assistance would be used for the purpose, trade minister Shehan Semasinghe said.

Some 33 lakh families have been identified which will receive the money from May to July, he said.