Home Business IMF Assures To Support Debt-Ridden Sri Lanka In Its Efforts To Overcome Economic Crisis

IMF Assures To Support Debt-Ridden Sri Lanka In Its Efforts To Overcome Economic Crisis

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New Delhi: With Sri Lanka grappling with an unprecedented financial turmoil, the Worldwide Financial Fund (IMF) has assured help to the debt-ridden nation in its efforts to mitigate the present disaster.

The IMF termed the preliminary discussions with the delegation led by Sri Lankan Finance Minister Ali Sabry as “fruitful”.

Sabry and his delegation, together with Central Financial institution Governor Nandalal Weerasinghe, are presently in Washington, the place they held technical discussions for an IMF-supported programme, PTI reported.

The visiting delegation and the IMF group had fruitful technical discussions on the authorities’ request for a programme supported by the worldwide lender.

The IMF in a press release earlier on Saturday stated the discussions coated current financial and monetary developments in Sri Lanka, and the necessity for implementing a reputable and coherent technique to revive macroeconomic stability.

The assertion added the IMF group will help Sri Lanka’s efforts to beat the present financial disaster by working carefully with the authorities on their financial programme, and by partaking with all different stakeholders in help of a well timed decision of the disaster.

The Washington-based worldwide lender additionally welcomed the Sri Lankan authorities’s plans to carry negotiations with the collectors.

The financial disaster within the island nation is precipitated partially by a scarcity of overseas forex, which has meant that Sri Lanka can not afford to pay for imports of staple meals and gas, resulting in acute shortages and really excessive costs.

The nation wants at the very least USD 4 billion to tide over its mounting financial woes.

The Finance Minister has been holding talks with the World Financial institution and nations like China and Japan for monetary help.

Earlier on Saturday, India agreed to increase a further USD 500 million credit score line to assist Sri Lanka import gas.

New Delhi has already agreed to defer USD 1.5 billion in import funds that Colombo must make to the Asian Clearing Union.

The Indian Excessive Fee stated India on Friday has additionally prolonged the tenure of a USD 400 million swap given in January this yr.

Sri Lankan President Gotabaya Rajapaksa has stated that his crisis-hit nation welcomed investments, know-how transfers and financing for its sustainability efforts and cooperation for debt restructuring to help the financial restoration throughout this crucial time.

Earlier on April 12, the island nation suspended its debt servicing for the primary time in its historical past.

With Sri Lanka struggling meals shortages, hovering gas costs and main energy cuts as a result of unprecedented monetary disaster, the island nation has been witnessing mass anti-government protests in current weeks.

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