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 assist 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 at the moment in Washington, the place they held technical discussions for an IMF-supported programme, PTI reported.

The visiting delegation and the IMF staff 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 mentioned the discussions coated latest 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 staff will assist 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 assist 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 induced partially by an absence of overseas forex, which has meant that Sri Lanka can’t afford to pay for imports of staple meals and gasoline, resulting in acute shortages and really excessive costs.

The nation wants not less than 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 assist.

Earlier on Saturday, India agreed to increase an extra USD 500 million credit score line to assist Sri Lanka import gasoline.

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 mentioned India on Friday has additionally prolonged the tenure of a USD 400 million swap given in January this 12 months.

Sri Lankan President Gotabaya Rajapaksa has mentioned that his crisis-hit nation welcomed investments, expertise transfers and financing for its sustainability efforts and cooperation for debt restructuring to assist 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 gasoline costs and main energy cuts as a result of unprecedented monetary disaster, the island nation has been witnessing mass anti-government protests in latest weeks.

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