Colombo, 29 June 2022 (TDI): Ranil Wickremesinghe, Prime Minister of the Democratic Socialist Republic of Sri Lanka, announced that the United States of America (US) granted new aid to Sri Lanka.
The aid package consists of USD 20 million and is provided by the US Agency for International Development (USAID). The aforementioned resources are destined for financial assistance. The funds will help to tackle the food crisis.
In a similar vein, Sri Lanka received a similar aid package from Australia less than a week ago. For instance, Australia’s donation consisted of 50 million dollars.
Sri Lanka’s Food Crisis: An Overview
Sri Lanka is actually facing an economic crisis. Its currency, the Rupee, has lost most of its value and the country faces a large external debt.
The economic crisis has produced a food crisis. Further, the situation has turned into a humanitarian emergency.
People in Sri Lanka find it hard to buy food, cooking gas, or medicine. In addition to the country’s situation, multiple commodity prices have risen in 2022 especially due to the conflict between Russia and Ukraine.
As a consequence, buying food is more expensive than before. Additionally, the country has suffered intense declines in agriculture production.
These production declines have also made food prices soar. This situation directly impacts households’ economies.
Therefore, social discontent is growing. Revolts and strikes are part of daily life in Asian country.
The population was already facing financial difficulties caused by the Covid-19 pandemic. Consequently, the country is in need of international support.
Benefits of the Financial Assistance
Throughout time, the US and Sri Lanka have shared positive relations. As an example, the US is Sri Lanka’s main export market.
Furthermore, since Sri Lanka’s independence in 1948, the US has shown its solidarity with the Asian country. The US has invested multiple resources in education, agriculture, and healthcare, among others.
It has also contributed more than USD 2 million in financial assistance. Prime Minister Wickremesinghe thanked the US President, Joe Biden, for the support through his official Twitter account:
I thank President Biden for the additional USD 20 million financial assistance to Sri Lanka. The funds will be used to address the food crisis and ensure food security. We sincerely appreciate the continuous support from the US.
— Ranil Wickremesinghe (@RW_UNP) June 28, 2022
To sum up, because of the 20 million dollars Sri Lanka has received, the country will be able to tackle the food crisis.
Nevertheless, all the financial aid that the country receives must be administered with responsibility and caution. It will be a long road to rebuilding the country’s economic stability.