US notes India’s critical support for reforms in Sri Lanka
India’s proactive actions have been critical in supporting Sri Lanka’s reform efforts, US Treasury Secretary Janet Yellen said.
She noted that when India and the US work together they can add significant momentum to important efforts.
“During the past six months, we have made progress across a number of areas. Debt distress in the developing world continues to pose a risk to macroeconomic growth and stability. Much more needs to be done to provide timely and comprehensive debt treatments. But we have taken steps forward on urgent cases like Sri Lanka — where India’s proactive actions have been critical to supporting the authorities’ reform efforts. We are continuing to push for urgent action in other cases as well.”
In April 2022, Sri Lanka declared its first-ever debt default — the worst economic crisis since its independence from the UK in 1948 — triggered by forex shortages that sparked public protests.
Yellen was speaking at the annual India Ideas Summit of the US-India Business Council.
Her comments come ahead of Prime Minister Narendra Modi’s official State Visit to the US next week.
Describing India as one of the US’s reliable trading partners, Yellen on Tuesday said the two countries are working to connect new communities to the global market so that they can move up the value chain.
“Looking forward, I believe that we have significant potential to grow trade and investment between our nations. Both of our countries are advancing what I call ‘modern supply-side’ policies — investing in human capital, physical capital, and science and technology to boost our long-term economic potential,” Yellen said.
Stating that Modi has launched a massive infrastructure programme — just as the US is beginning to see the early results of President Joe Biden’s Bipartisan Infrastructure Law — Yellen observed that India’s infrastructure investments have significant potential to boost productivity and increase trade efficiency between the two countries. (PTI / Colombo Gazette)
