Sri Lanka begs IMF for urgent financial assistance

Impoverished Asian Island country Sri Lanka, on Monday, made a request to the International Monetary Fund (IMF), for urgent financial assistance, according to the country’s finance minister, Ali Sabry.

The request, according to Sabry, was being considered by the global lender after an initial reluctance to assist the country.

A delegation headed by Sabry has already kicked off formal talks with the IMF in Washington, DC, 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.

Read also: Sri Lanka govt closes embassy In Nigeria, others over $26bn debts

“The foreign minister made a request for a Rapid Financing Instrument (RFI) to mitigate the current supply chain issues, yet initially is 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.

“The IMF appears to be positive towards granting an extended fund facility, a longer facility of up to four years with easier, and longer, repayment terms.

“Ideally if this can be expedited, it can help stabilise things in the short term till long-term solutions kick in,” Zavahir added.

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