(LANKAPUVATH | COLOMBO) – Minister of State for Finance Shehan Semasinghe says the government strongly believes that the approvals of the International Monetary Fund (IMF) will be received in the first quarter of 2023 and will be able to start the economic stabilization of the country.
The State Minister points out that the 2.9 billion dollars due to be received from the International Monetary Fund cannot be considered as a meager aid as the arrangement builds trust in the country beyond its financial value.
Participating in an event held in Thambuttegama area, Minister Semasinghe said some parties are trying to talk down the value of this International Monetary Fund at 2.9 billion dollars
“We know that some parties criticize the functioning of the International Monetary Fund. But none of those people were involved in any process carried out by the International Monetary Fund for Sri Lanka. They do not understand this process. It is sad that there are people who have made Sri Lanka’s economic crisis and people’s suffering their politics.”
“We not just expecting 2.9 billion dollars in four years from the International Monetary Fund process. But the trust built in that, the assurance we get internationally is very important.”
“Lending Institutions like the World Bank, JICA, and the Asian Development Bank are able to operate normally. Because currently we only receive aid as emergency aid. With the assurance of the International Monetary Fund, we will be able to return to the financial market, the pressure on the banking system will decrease, inflation will start to come down, restrictions will be relaxed, and the bank interest rate will decrease,” said the minister.
Sri Lanka hoped the IMF executive board to approve the deal by year-end but the Fund is not expected to formally approve Sri Lanka’s $2.9 billion bailout before year-end, a key step required for the country to receive funding, according to a Reuters report.
Sri Lanka reached an IMF staff-level agreement in June with the deal subject to approval and contingent on Sri Lanka authorities following through with previously agreed measures.