Sri Lanka seeks IMF’s help for immediate financial aid.
According to an assistant to the country’s finance minister, Sri Lanka has requested immediate financial assistance from the International Monetary Fund (IMF), which the global lender may consider after some hesitation.
Protests have erupted in the island nation as it struggles to recover from the consequences of COVID-19, mishandled government finances, and rising fuel prices, which have depleted foreign reserves.
Sri Lanka’s Finance Minister Ali Sabry led a group to Washington on Monday to begin formal talks with the IMF on a program that the government believes will assist in topping up its reserves and attract bridge finance to pay for crucial imports of petroleum food, and medicines.
“The (foreign minister) requested a Rapid Financing Instrument (RFI) to address current supply chain concerns. But the IMF first believed it did not satisfy their criteria,” Sabry’s adviser Shamir Zavahir tweeted.
“However, India afterward made submissions on an RFI for (Sri Lanka), and the IMF may consider this request given to the particular circumstances.”
Sri Lanka is seeking $3 billion from various sources in the coming months, including the IMF, the World Bank, and India, according to Sabry, who spoke to Reuters earlier this month.
The country’s central bank announced last week that repayment on the part of its foreign debt would be suspended, awaiting a reorganization.
Protests seeking President Gotabaya Rajapaksa’s removal have continued for more than a week in Colombo, the commercial hub.
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