(LANKAPUVATH | COLOMBO) – The International Monetary Fund (IMF) welcomes the progress made by Sri Lankan authorities in taking “decisive” policy actions and obtaining financing assurances from all major creditors including China, India and the Paris Club, IMF Managing Director Kristalina Georgieva said.
IMF Chief in a Twitter post said she looks forward to presenting the IMF-supported program to the global lender’s Executive. Board on March 20.
“The Extended Fund Facility (EFF) will support the authorities’ program of ambitious reforms, which will help Sri Lanka emerge from its current crisis and set it on a trajectory of strong and inclusive growth,” Georgieva said further.
Addressing the parliament Tuesday, President Ranil Wickremesinghe said a letter of agreement, signed by him as the finance minister and the Central Bank Governor Dr. Nandalal Weerasinghe, was forwarded to the IMF soon after receiving assurances from the Export-Import (EXIM) Bank of China.
The President further said Sri Lanka had a staff-level agreement with the IMF by September 1, 2022, but the IMF could not present the agreement to the Executive Board until the country achieves debt sustainability. To achieve debt sustainability, the Government continued discussions with creditors and sought the help of international agencies like Lazard and Clifford Chance.
Krishna Srinivasan, director of the IMF’s Asia and Pacific Department (APD) said the financing assurances from the creditors paves the way for consideration by the IMF’s Board on March 20 the approval of the Staff Level Agreement reached on September 1, 2022 for financing under an Extended Fund Facility.
