December 7, 2022
2 mins read

Sri Lanka needs coordinated assistance program for recovery

The island nation is going through the worst-ever financial crisis since the country’s independence in 1948 and battling with the skyrocketing inflation and dollar crunch..writes Susitha Fernando

Visiting representatives from the World Bank (WB), Asian Development Bank (ADB), International Monetary Fund (IMF) and Asian Infrastructure Investment Bank (AIIB) have ruled that a coordinated assistance program supported by multilateral financial institutions is vital for Sri Lanka’s recovery from the current economic crisis.

On Tuesday, the group of representatives, which included WB Vice President Martin Raiser, ADB Vice President Shixin Chen, IMF’s Senior Mission Chief Peter Breuer and AIIB’s Urjit Patel, met President Ranil Wickremesinghe, other ministers and top financial officials in Colombo.

Wickremesinghe, who also holds the Finance portfolio, presented Sri Lanka’s development programme associated with the economic recovery and growth along with the vision for long-term development.

The meeting also saw the participation of Prime Minister Dinesh Gunawardene, Governor of the Central Bank of Sri Lanka Nandalal Weerasinghe, former GovernorIndrajith Coomaraswamy and many other senior officials from the government institutions and other institutions.

Flag of Sri Lanka



Going through the worst-ever financial crisis since the country’s independence in 1948 and battling with the skyrocketing inflation and dollar crunch, Sri Lanka decided to default its $51 billion foreign debt in May.

In September the island nation reached a staff-level agreement with the IMF to obtain a conditional $2.9 billion package. But the country has to obtain assurance from its diverse creditors including India, Japan and China.

India, which has provided over $3.8 billion financial assistance since January, the biggest ever by a single country, has urged the IMF to assist its southern neighbour, while Japan in September announced its support for the island nation to secure the IMF bailout.

China, the top lender since the end of civil war in 2009, is yet to announce its stance.

Last week, Shanakiyan Rasamanickam, an Opposition lawmaker representing the Tamil National Alliance, charged that China was stalling Sri Lanka’s IMF deal.

“If China is truly Sri Lanka’s friend, ask the Chinese to help with the debt restructuring and the IMF program,” he challenged.

Questioned by the media on Monday, China’s Foreign Ministry spokesperson Mao Ning said that Beijing would assist the countries and financial institutions to resolve Colombo’s crisis.

“China attaches high importance to Sri Lanka’s difficulties and challenges. We support the financial institutions in working out ways with Sri Lanka to properly solve the issue. We also hope relevant countries and international financial institutions will work with China and continue to play a constructive role in helping Sri Lanka overcome the current difficulties, ease its debt burden and realize sustainable development,” the spokesperson added.

ALSO READ: Lanka teams up with India to revive dairy industry

Previous Story

New diplomatic row emerges between Nepal, India

Next Story

From Delhi…to the unexplored

Latest from -Top News

Modi rallies diaspora for India’s 2047 vision 

Highlighting the diaspora’s achievements, PM Modi praised their contributions, noting that India is now the world’s top recipient of remittances, largely thanks to their hard work….reports Asian Lite News Prime Minister Narendra

More troubles await China in 2025 

As the new year unfolds, it is clear that both China and its global counterparts are in for a turbulent period. One key aspect to monitor closely will be the evolving dynamics

Japan, Sri Lanka strengthen bilateral cooperation 

The discussions focused on key topics such as debt restructuring, the ongoing expansion project at Bandaranaike International Airport (BIA)…reports Asian Lite News Sri Lankan Prime Minister Dr. Harini Amarasuriya met with Mr.

Sri Lankan President due in China on Jan 14 

This visit follows Dissanayake’s first foreign trip to India in December, after assuming office on September 21….reports Asian Lite News Sri Lankan President Anura Kumara Dissanayake will begin a three-day visit to

Indo-Nepal forces tackle urban warfare, jungle survival 

The exercise features rigorous training in jungle survival, urban warfare, heliborne operations…reports Asian Lite News With focus on counterterrorism and operations in challenging terrains, the 18th edition of the Indo-Nepal Joint Military
Go toTop

Don't Miss

Australia supports Sri Lanka with $50 million development assistance

The island nation’s worst economic crisis in seven decades led

Lanka to Embrace Modern Technology

The President is working with the Ministry of Technology to