Finance Minister Nirmala Sitharaman has emphasised the importance of rescuing countries in debt distress as a result of the pandemic and recent geopolitical developments.

Sitharaman said India is concerned about the risks to global recovery posed by rising uncertainty amid increased geopolitical tensions at a meeting with World Bank Group President David Malpass on Friday.

According to a finance ministry release, the Finance Minister, who is in the United States for the IMF-Globe Bank Spring Meetings 2022, said that multilateralism has become more important as the world enters a period of extreme uncertainty.  "Given the pandemic and recent geopolitical developments, the World Bank must step in to help countries in debt distress." The World Bank, in particular, needs to pay close attention to Sri Lanka, which is experiencing an unparalleled economic crisis," she said.

Sri Lanka, India's neighbour, is experiencing its worst-ever economic crisis, exacerbated by currency shortages and a balance-of-payments catastrophe. The country's economic situation is exacerbated by a lack of foreign currency, which has left it unable to pay for imports of basic goods and gasoline, resulting in severe shortages and exorbitant costs.

Large-scale protests are taking place across the island nation over the government's management of the debt-ridden economy, which is experiencing its worst-ever economic crisis. The Finance Minister emphasised during the meeting that India's pandemic response has been focused on saving lives and livelihoods.  

She also spoke about the impact of the Russia-Ukraine war on the global economy, specifically on India; the economy and role of the World Bank Group; the Single Borrower Limit and the prospect of other nations providing guarantees; and India's G20 presidency.

Sitharaman emphasised India's infrastructure development strategy, saying the country anticipates the World Bank's sustained support for funding investments in the National Infrastructure Pipeline and the Gati Shakti initiative.

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