close_game
close_game

Sri Lanka asks IMF for rapid financial assistance

Reuters |
Apr 19, 2022 10:53 AM IST

A delegation headed by Sri Lanka's Finance Minister Ali Sabry kicked off formal talks with the IMF in Washington on Monday.

Sri Lanka has requested the International Monetary Fund (IMF) for rapid financial assistance and the global lender could consider it after initial reluctance, an aide to the country's finance minister said on Tuesday.

Demonstrators shout slogans during a protest in Sri Lanka.(REUTERS)
Demonstrators shout slogans during a protest in Sri Lanka.(REUTERS)

Protests have erupted in the island nation as it battles a devastating financial crisis brought by the effects of COVID-19, mismanaged government finances and rising prices of fuel that have sapped foreign reserves.

A delegation headed by Sri Lanka's Finance Minister Ali Sabry kicked off formal talks with the IMF in Washington on Monday for a programme the government hopes will help top up its reserves and attract bridge financing to pay for essential imports of fuel, food and medicines.

Also read: Need to take lessons from Sri Lanka crisis

"The (foreign minister) made a request for a Rapid Financing Instrument (RFI) to mitigate the current supply chain issues, yet initially IMF of the view that it doesn’t meet their criteria," Sabry's aide Shamir Zavahir said on Twitter.

"However, India subsequently made representations on an RFI for (Sri Lanka) as well and IMF may consider this request due to the unique circumstances."

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 crisis, Sabry told Reuters earlier this month.

Also read: In crisis-hit Sri Lanka petrol prices surge, to cost LKR 338 per litre

Last week, the country's central bank said it was suspending repayment on some of its foreign debt pending a restructure.

In the commercial capital Colombo, protests demanding the ouster of President Gotabaya Rajapaksa have dragged on for more than a week.

Read breaking news, latest...
See more
Read breaking news, latest updates from US, UK, Pakistan and other countries across the world on topics related to US Election, politics,crime, along with national affairs.
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Monday, October 07, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On