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ARTICLE · 29 AUGUST 2024

Green Debt Swaps: A Win-Win For India And Sri Lanka

Ikigai Law
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Green debt swaps offer a promising solution to address Sri Lanka's debt crisis while promoting environmental conservation and sustainable development.

GlobalEnergy and Natural Resources
Anirudh Rastogi
Anirudh Rastogi
Daniel Odhisho
Daniel Odhisho
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This is a summary of an article published by the Observer Research Foundation.

Green debt swaps offer a promising solution to address Sri Lanka's debt crisis while promoting environmental conservation and sustainable development. This article explores the potential benefits of such swaps between India and Sri Lanka.

Green debt swaps allow countries to reduce foreign debt in exchange for environmental protection commitments. Sri Lanka's overwhelming debt has hindered its ability to invest in climate mitigation and environmental conservation. As a regional ally, India can leverage green debt swaps to strengthen its geopolitical influence in South Asia and counter Chinese influence in the region.

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