India and Sri Lanka as two immediate neighbours enjoy broad sustained bilateral ties. Over the two thousand years of coexistence, whole range of issues have dominated the bilateral ties many arising out of the dynamic domestic environment and some from extra regional exigencies. While both states continue to profess amity and cooperation, points of friction continue to often overwhelm the bilateral ties. Underlying bilateral tension over issues of fisherman and fishing rights, issues over the minority ethnic Tamil population simmer amongst some others.

As the parliament in Nepal was dissolved by President Bidya Devi Bhandari on May 22 to pave the way for the mid-term elections in November, a week later, on May 29, in a televised address Finance Minister Bishnu Poudel presented the annual budget plan of NRs.1.64 trillion (14.17 billion US dollar) for the fiscal year 2021-22. The budget which was brought through an ordinance had the twin objectives of controlling the COVID-19 pandemic and bringing in economic recovery to the country.