Sri Lanka is facing a severe economic crisis due to the coronavirus pandemic. The decline in income from the tourism sector has affected their foreign exchange reserves. Gradually it came to only four and a half billion dollars. Because of this, the Lankans are trying to overcome the crisis with dollars from different countries. In this situation, Bangladesh has extended a helping hand to its neighbors. Last week, Bangladesh Bank approved a currency swap of 20 million dollars with Sri Lanka. Analysts consider this incident as another milestone in the economic development of Bangladesh.
This is being discussed in the international media. What is the Indian media saying about this 'achievement' of Bangladesh? Let's find out-
Many media outlets in India have seriously expressed the issue of Bangladesh's financial aid to Sri Lanka. According to them, Dhaka has already started showing signs of economic progress and thereby strengthening relations with its neighbours.
Sri Lankan Prime Minister Mahinda Rajapaksa came to Dhaka on March 19 to attend the Bangabandhu birth centenary ceremony. At that time, he had a formal meeting with Prime Minister Sheikh Hasina. In view of that meeting, recently the Governor of the Central Bank of Sri Lanka wrote a letter to the Governor of Bangladesh Bank asking for dollars.
The issue was raised in the Bangladesh Bank Board of Directors meeting last week. It was informed there that currently the country's foreign exchange reserves are about 45 billion dollars. From there it was decided to give 20 million dollars to Sri Lanka in that meeting.
However, this aid given to Sri Lanka is not exactly a loan. Instead of 20 million dollars, Sri Lanka will give Bangladesh an equivalent amount of Rs. Bangladesh Bank will also get some interest with this.
Indian Express has done a detailed report explaining the matter. According to them, so far Bangladesh has not been seen as a donor country. It is among the world's 'poorest' countries and still receives hundreds of billions of dollars in aid. But in the last two decades, Bangladesh has pulled itself together more or less single-handedly, and in 2020 it became the fastest growing economy in South Asia.
Bangladesh's economy grew by 5.2 percent last year, and is expected to grow by 6.8 percent in 2021. The country has lifted millions of people out of poverty. Their per capita income is currently higher than that of India.
The Indian media said it was probably the first time for Bangladesh to help Sri Lanka, so naturally it was a milestone.
India's influential newspaper The Hindu wrote that the currency exchange comes as the pandemic has hit Sri Lanka's main foreign exchange-earning sector. Last April, the country's foreign exchange reserves stood at just $4.5 billion, which is almost equal to its total foreign debt repayments this year.
According to the newspaper, the Sri Lankan Prime Minister had requested a currency exchange of $1.1 billion during a telephone conversation with Indian Prime Minister Narendra Modi in May last year. But till now India has not approved the matter. In contrast, Bangladesh sanctioned much-needed funds for Sri Lanka in just two months.
Not only to Sri Lanka, but also to India, which is drowning in the second wave of the Corona epidemic, another media outlet, The Print, has specifically mentioned the sending of medical aid from Bangladesh. According to them, Bangladesh has sent aid to India at least twice during the pandemic.
On May 18, Dhaka handed over various types of medical protection materials including anti-viral drugs. Earlier, Bangladesh had given 10,000 vials of Remdesivir to India on May 6.
The print says that Bangladesh, which is growing at 5.8 percent in the current financial year, has caught the attention of the United States. Last April, the U.S. Chamber of Commerce launched the U.S.-Bangladesh Business Council, which aims to find potential U.S. investors for Bangladesh and increase two-way trade. Prime Minister Sheikh Hasina-led government has won praise even from 'arch-rival' Pakistan.
According to Professor Prabir Dey of Delhi-based Research and Information System for Developing Countries (RIS), the biggest contribution to Bangladesh's economic development is the Generalized System of Preferences or GSP benefits from the European Union.
He told The Print that this is because Dhaka has been able to earn enough income through exports due to the ongoing support of the EU's GSP scheme. Besides, Bangladesh is also receiving large amount of remittances.
Prabir Dey said that Bangladesh is now trading with major ASEAN countries and is trying to launch commercial agreements and connectivity projects with other countries of the alliance. According to the Indian analyst, Bangladesh is the new Royal Bengal Tiger of Asia.
