The International Monetary Fund (IMF) said on Saturday it had “fruitful technical discussions” with Sri Lankan authorities over the island nation’s request for an IMF-backed loan program this week.
IMF Managing Director Kristalina Georgieva met with a Sri Lankan delegation at the 2022 Spring Meetings of the IMF and World Bank in Washington, DC.
The Sri Lankan delegation was led by Finance Minister Ali Sabry and Central Bank of Sri Lanka Governor Nandalal Weerasinghe. The IMF team for Sri Lanka had initial technical discussions on an IMF-supported program with the delegation.
“From April 18 to 22, the Sri Lankan delegation and the IMF team had fruitful technical discussions on the authorities’ request for an IMF-supported program. The discussions focused on recent economic and financial developments in the Sri Lanka, the need to implement a credible program and coherent strategy to restore macroeconomic stability, and the importance of stronger social safety nets to mitigate the negative impact of the current economic crisis on the poor and vulnerable” , the IMF said in a statement.
The international lender welcomed the authorities’ plan to engage in a collaborative dialogue with their creditors.
“Going forward, the IMF team will support Sri Lanka’s efforts to weather the current economic crisis by working closely with the authorities on their economic program and engaging with all other stakeholders to a quick resolution to the crisis,” the statement added. .
Sri Lanka is grappling with an economic crisis considered to be the worst since the country gained independence in 1948. Due to power shortages, parts of Sri Lanka are experiencing power cuts.
Sri Lanka’s external debt is estimated at $51 billion.
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