• Tue. Apr 23rd, 2024

Sri Lanka hopes to secure  the IMF bailout within this month 

 Minister of Foreign Affairs Ali Sabry express confidence in securing the IMF bailout package within this month since considerable progress has been made with the International Monetary Fund.

Speaking to the Indian media, Sabry said the country is very optimistic and things are heading in the right direction.

The Minister praised for India coming forward and for proving debt assurances that were required to unlock the IMF package.He said the Paris Club also provided assurances that were required by the IMF while China’s assurances have not met the target.

Minister Sabry said discussions are still ongoing with China. Minister of Foreign Affairs Ali Sabry stressed that the government had fulfilled all 15 prior actions presented by the IMF as well.

Meanwhile a discussion took place recently over Zoom between the Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, and President Ranil Wickremesinghe.

The discussion focused extensively on the IMF financial facility and the expected debt restructuring for Sri Lanka.
Currently, there is a prevailing sense of optimism among all stakeholders involved in Sri Lanka’s debt restructuring and financial facility.

It is noteworthy that the IMF Managing Director is having this discussion with the President, considering the recent discussion held with the Chinese Prime Minister.

According to a recent report by Bloomberg News, Chinese Premier Li Keqiang expressed China’s willingness to participate in multilateral efforts aimed at constructively contributing to debt-ridden countries during a discussion with the IMF Managing Director. The report further suggests that debt-ridden countries like Sri Lanka and Pakistan are taking necessary steps towards taking joint action in this regard.

The government expects first tranche of USD 2.9 billion on or before end of March 2023.

A 4-member delegation led by Treasury Secretary K M Mahinda Siriwardana is to leave for US shortly.

Sri Lanka reached a staff-level agreement in September last year and the four-year programme amounting to USD 2.9 billion is expected to unlock further funding.

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