IMF to Consider Rapid Financial Aid After Representations by India: Sri Lanka
On Monday, Sri Lankan Finance Minister Ali Sabry-led delegation started formal talks with the IMF in Washington
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Sri Lanka's finance ministry said on Tuesday, 19 April, that the International Monetary Fund (IMF) will consider providing quick financial assistance to the debt-burdened country after representations by India.
On Monday, Sri Lanka's Finance Minister Ali Sabry-led delegation started formal talks with the IMF in Washington. The government is hopeful that the programme would help top up its reserves and attract bridge financing to pay for imports of fuel, food and medicines, reported Reuters.
Sabry's aide Shamir Zavahir took to Twitter and informed that the finance minister made a request for a loan under the Rapid Financing Instrument (RFI) window to mitigate the current supply chain issues. However, the IMF was of the view that it doesn't meet their criteria, he said.
"It had been communicated that IMF will consider the special request made despite it being outside of the standard circumstances for the issuance of an RFI."
Meanwhile, the former chief justice of Sri Lanka, Sarath Nanda Silva, said the Sri Lankan government had failed to respond to the problems being faced by the people.
"This is the reason the people have taken to the streets. If the government is a total failure, then the Supreme court can't do anything."
SL FM Meets Nirmala Sitharaman; IMF Chief Appreciates India's Help
Both India and China have already given billions of dollars to Sri Lanka in financial support.
Sabry also met Indian Finance Minister Nirmala Sitharaman on the sidelines of the IMF meeting.
"India will fully support the deliberations of Sri Lanka with the IMF, especially on the special request made for expediting an extended fund facility," Sabry's office said after his meeting with Sitharaman.
Meanwhile, IMF's Managing Director Kristalina Georgieva appreciated India for helping the island nation deal with its economic crisis.
She also assured Sitharaman that IMF would continue actively engaging with Sri Lanka.
Background
Meanwhile, Sri Lankan President Gotabaya Rajapaksa appointed a new Cabinet on Monday, 18 April.
Sri Lankan citizens have been protesting since 31 March amid a major financial crisis. Street protests erupted against Rajapaksa and his brother, Prime Minister Mahinda Rajapaksa as the nation faced shortage of essential commodities including fuel, food, and medicine.
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