Sri Lanka’s Finance Minister Ali Sabry has met with the International Monetary Fund (IMF) Managing Director Kristalina Georgieva at the IMF Headquarters in Washington DC, USA.
Following is an update from Minister Sabry’s Coordinating Secretary Shamil Zavahir on the meeting:
Negotiations with the IMF started on a positive note today. They see the recent steps taken to increase the interest rates and calling for RfP’s for the appointment of International Financial/Legal Advisors as good first steps towards a possible restructuring Programme.
The Finance Minister made a request for a Rapid Financing Instrument (RFI) to mitigate the current supply chain issues, yet initially, the IMF was of the view that it doesn’t meet their criteria.
However, India subsequently made representations on an RFI for Sri Lanka as well and the IMF may consider this request due to the unique circumstances. In any event, the IMF appears to be positive towards granting an Extended Fund Facility (EFF).
Ideally if this can be expedited, it can help stabilize things in the short term till long-term solutions kick in.
