IMF urges Sri Lanka to tighten monetary policy, raise tax to address debt woes | World News - Hindustan Times
close_game
close_game

IMF urges Sri Lanka to tighten monetary policy, raise tax to address debt woes

Reuters |
Apr 26, 2022 06:57 AM IST

Sri Lankan Finance Minister Ali Sabry was in Washington last week to talk to the IMF, the World Bank, India and others about financing help for his country, which has suspended payments on portions of its $51 billion in external debt.

Sri Lanka must tighten monetary policy, raise tax and adopt flexible exchange rates to address its debt crisis, a senior International Monetary Fund (IMF) official said on Tuesday.

A demonstrator holding placard takes part in a protest against Sri Lanka President Gotabaya Rajapaksa, near the Presidential Secretariat, amid the country's economic crisis, in Colombo, Sri Lanka, Saturday.(REUTERS)
A demonstrator holding placard takes part in a protest against Sri Lanka President Gotabaya Rajapaksa, near the Presidential Secretariat, amid the country's economic crisis, in Colombo, Sri Lanka, Saturday.(REUTERS)

The country of 22 million people has requested loans from the IMF as it struggles to pay for imports amid crushing debt and a sharp drop in foreign exchange reserves that has fueled soaring inflation.

"We've had very good, fruitful, technical discussions on preparations for the negotiations with authorities over the past weekend and couple of days before," said Anne-Marie Gulde-Wolf, acting director of the IMF's Asia and Pacific Department, speaking at an online news conference.

Sri Lankan Finance Minister Ali Sabry was in Washington last week to talk to the IMF, the World Bank, India and others about financing help for his country, which has suspended payments on portions of its $51 billion in external debt.

"The requirement for fund lending will be progress toward debt sustainability," Gulde-Wolf said, calling on Sri Lanka for measures to increase tax revenues to address critical spending needs.

"Monetary policy has to be tightened to keep inflation in check," she said. "We see a need for flexible exchange rates."

Gulde-Wolf did not reply to a question on the total value for any IMF package, nor the estimated timing of a conclusion to the negotiations with Sri Lanka.

Catch every big hit, every wicket with Crickit, a one stop destination for Live Scores, Match Stats, Infographics & much more. Explore now!

See more

Get Current Updates on World News, US News , Hollywood News , Anime and Top Headlines from around the world.

SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Tuesday, July 23, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On