Milinda Moragoda, Sri Lanka’s High Commissioner to India, spoke to Nirupama Subramanian about his country’s economic crisis, relations with India and big power rivalry in the Indian Ocean.
How bad is the economic crisis in Sri Lanka?
We have two challenges before us. One is the foreign exchange challenge, which is showing at the moment. The other is the fiscal challenge, a legacy inherited since Independence because we have lived beyond our means. The pandemic has brought it to the top. [American business magnate and investor] Warren Buffett has this famous quotation: “When the tide goes down, you see who is swimming naked.” I think the pandemic has brought the tide down. It is a real challenge, India has stepped in to stabilise the situation a little bit, but we have to deal with the root causes.
How has India helped?
When [Sri Lankan Finance Minister] Basil Rajapaksa visited [in December 2021], we agreed on “four pillars of co-operation” for the short term. The first…