The IMF has assured its fullest support, and a positive response has also been received to expedite the process to strengthen the support extended to Sri Lanka…reports Asian Lite News
The International Monetary Fund (IMF) has commended the steps already taken by Sri Lanka to stabilise its economy, the Sri Lankan Finance Ministry said in a press release here on Tuesday.
The ministry said Finance Minister Ali Sabry met IMF Managing Director Kristalina Georgieva on Monday at the IMF headquarters, Xinhua news agency reported.
The IMF has assured its fullest support, and a positive response has also been received to expedite the process to strengthen the support extended to Sri Lanka, according to the press release.
Sabry also requested a Rapid Financing Instrument (RFI) and the IMF has subsequently informed him that India had also made representations on behalf of Sri Lanka for an RFI.
The Sri Lankan government decided last week to suspend repayment of all debts for an interim period till it has an orderly and consensual debt restructuring programme supported by the IMF.
India has also appealed to the IMF on behalf of Sri Lanka, according to the statement. Sitharaman further affirmed to Sabry that India will support the Sri Lankan request to speed up an Extended Fund Facility from IMF.
“Sitharaman has assured Minister Ali Sabry on India’s fullest support to Sri Lanka to move forward and has emphasized on India’s commitment to strengthen the development of the economy in Sri Lanka and building stronger bonds between the two Nations as they move forward together,” the statement noted.
Meanwhile, IMF chief has appreciated India’s help to Sri Lanka in tackling its economic crises while assuring Finance Minister Nirmala Sitharaman that the financial institution would continue to actively engage with the island nation.
Sri Lanka is now facing its worst economic crisis since gaining independence in 1948. The recession is attributed to foreign exchange shortages caused by a clampdown on tourism during the COVID-19 pandemic. It left the country unable to buy enough fuel, with people facing an acute scarcity of food and basic necessities, heating fuel, and gas.
The economic situation has led to huge protests with demands for the resignation of Prime Minister Mahinda Rajapaksa and President Gotabaya Rajapaksa.