The International Monetary Fund (IMF) will consider giving immediate financial help to debt-burdened Sri Lanka, following India’s requests, Sri Lanka’s finance ministry announced.
According to Sri Lankan Finance Minister Ali Sabry, Sri Lanka is seeking $3 billion in the coming months from multiple sources including the IMF, the World Bank, and India to stave off the country’s crisis.
The impacts of COVID-19 compounded mismanaged government finances, while rising fuel prices depleted foreign reserves, resulting in Sri Lanka’s disastrous financial catastrophe.
Sabry led a group to Washington on Monday to begin formal talks with the IMF on a program that the government believes will help top up its reserves and attract bridge funding to pay for crucial imports of fuel, food, and medicines.
“Negotiations with IMF started on a positive note today. They see the recent steps taken to increase the interest rates and calling for RFP’s for the appointment of Intl. Financial/Legal Advisors as good first steps towards a possible restructuring Programme.” said Shamir Zavahir, Sabry’s aide.
Street protests have erupted all over Sri Lanka against President Gotabaya Rajapaksa and his brother, Prime Minister Mahinda Rajapaksa.
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