India Increases Sri Lanka Assistance to INR 4 Bn 📈

India has significantly raised its budgetary support for Sri Lanka, positioning the island as a key recipient of bilateral aid within the region for the 2026-27 fiscal year. • Financial Overview: India has allocated INR 4 billion (approx. US$ 43.6 million) for Sri Lanka, reflecting a 33% increase from the INR 3 billion (US$ 32.7 million) provided in the 2025-26 revised estimates. • Regional Context: Despite a slight decrease in India's total foreign aid budget (INR 56.86 billion), Sri Lanka remains a high-priority partner. Other major recipients include Bhutan (INR 22.89 billion), Nepal (INR 8 billion), and the Maldives (INR 5.5 billion). • Historical Trend: The new allocation marks a recovery in aid volume compared to the actual expenditure of INR 3.17 billion recorded in 2024-25. • Strategic Impact: This increased funding is directed toward strengthening bilateral relations and supporting regional stability, which remains vital for Sri Lanka’s infrastructure development and economic recovery efforts.