IMF to begin next round of technical discussions with Sri Lanka from Monday

Amid the?worsening economic situation,?the International Monetary Fund’s (IMF’s) mission chief to Sri Lanka stated that the world financial body is expected to begin the next round of technical discussions with the island nation from May 9 to May 23.

In a statement issued on Friday, Nozaki stressed that the IMF is committed to aiding Sri Lanka in accordance with its policies.

“Because Sri Lanka’s debt is assessed as unsustainable, approval of IMF financing, including through a Rapid Financing Instrument, would require adequate assurances that debt sustainability will be restored,” he stated, as per?ANI.?

In the month of April, ?the two sides convened their first round of talks at the IMF headquarters in Washington, DC. Sri Lanka is hoping for a Rapid Finance Instrument (RFI) facility as well as a larger Extended Fund Facility (EFF) from the international financial body to help it deal with its foreign currency shortages, which have triggered an economic crisis. In the last meeting, the IMF?assured to help the country with an amount of $300 million to $600 million. According to IMF, the island nation will receive the said amount from the World Bank over the course of the next four months.

The Sri Lankan government would spend the sanctioned amount on medications and other vital products, according to an IMF statement.?Meanwhile, Sri Lankan Finance Minister Ali Sabry said that the country is looking for investors that can help in bringing over $2 billion into the Central Bank. “There is a need to attract investments in US dollars into Sri Lanka’s central bank,” he said, adding that the government is in touch with several nations in an attempt to get funds as soon as possible,?Xinhua?reported.

It is significant to mention here that Sri Lanka is facing its worst economic crisis since its independence in 1948. The island nation’s government is currently battling to meet basic requirements for its 22 million citizens amid an unprecedented economic crisis caused by mishandling of finances and ill-timed tax cuts. The country is also facing a foreign exchange deficit, which has resulted in food, fuel, power, and gas shortages, and has sought economic assistance from friendly countries. (Courtesy Republic World)