(Reuters) – The International Monetary Fund said it will need “sufficient assurances” from Sri Lankan creditors for a new plan as it prepares to visit Colombo later this month.
TARGET The IMF said on Friday the purpose of the visit was to make progress on a staff-level agreement on a “near-term” aid package to help the island nation weather a severe economic crisis.
The International Monetary Fund said staff at the global bank will be Colombo.
“Since Sri Lanka’s IMF stated that Sri Lanka’s public debt was assessed as unsustainable, the IMF Executive Board’s approval of the Extended Fund Lending Program will require Sri Lankan creditors to fully guarantee debt sustainability will be recovery,” the IMF said.
Reuters reported on Thursday that Sri Lanka will ask Japan to invite major creditors of the Indian Ocean island nation, including China and India, to negotiate a bilateral debt restructuring.
Loan options under negotiation h According to President Ranil Wickremesinghe, the IMF budget is between $2 billion and $3 billion, He said he would present an interim budget in September focused on fiscal consolidation measures agreed with the International Monetary Fund.
Millions are facing the worst financial crisis since 22 independence from the UK, caused by the COVID-
caused by the combined effects of the pandemic and economic mismanagement.
Ordinary Sri Lankans have been battling shortages for months amid severe inflation and currency devaluation, sparking an unprecedented pandemic Mass protests. In early July, thousands stormed the colonial-era presidential residence in the commercial capital Colombo.
Sri Lanka’s total bilateral debt was estimated at $6.2 billion earlier this year at year end International Monetary Fund. It also has 14 $1 billion in international sovereign debt.
