April 20, 2022
2 mins read

IMF lauds steps taken by Lanka to stabilise economy

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.

ALSO READ: India backs Lanka, bats for IMF bailout

Previous Story

Taliban spurn reports on TTP presence in Afghanistan

Next Story

Bumpy road ahead for India?

Latest from -Top News

‘Kill and Dump’ Haunts Balochistan Again

The latest killings have reignited accusations of extrajudicial executions and the use of counterterrorism laws to cover up custodial deaths in Balochistan….reports Asian Lite News Concerns have deepened across Balochistan following the

‘ASEAN Expands, But Keeps Its Soul’

Malaysian Foreign Minister Mohamad Hasan urged ASEAN to uphold its unity and strategic resolve amid intensifying geopolitical tensions and mounting external pressures…reports Asian Lite News Consensus and inclusivity will remain the cornerstones

Bangladesh bends to beat Trump’s blow

Dhaka seeks compromise as Trump’s 35% tariff looms large over key exports; Washington urges worker protections, factory relocation to US…reports Asian Lite News Bangladesh has opened the second round of critical trade

China seethes as US lands F-35s in PH

As US F-35 jets land in the Philippines for the first time, Manila cements its frontline role in Washington’s power play against rising China….reports Asian Lite News The Philippines is rapidly cementing
Go toTop

Don't Miss

Lankan tourism sees turnaround

More than 42,000 international tourists entered Sri Lanka in October,

Sri Lanka wants Chinese fertiliser firm blacklisted

The Chinese embassy in Colombo jumped into the argument and