Sri Lanka approaches IMF & World Bank for bridging loans

On Tuesday, in a statement Sri Lanka’s Finance Minister said, Sri Lanka has approached the International Monetary Fund (IMF) for rapid financial assistance.

The island nation has been embroiled in a deep financial crisis midst allegation of gross mismanagement of government finances and rising prices of fuel which have dented foreign reserves leading to massive protests.

A delegation headed by Sri Lanka’s Finance Minister Ali Sabry kicked off formal talks with the IMF in Washington with the government hoping to boost financial reserves and attract bridge financing to pay for essential imports of fuel, food and medicines.

“The (foreign minister) made a request for a Rapid Financing Instrument (RFI) to mitigate the current supply chain issues, yet initially IMF of the view that it doesn’t meet their criteria,” tweeted Sabry’s aide Shamir Zavahir.

He went on to add, “However, India subsequently made representations on an RFI for (Sri Lanka) as well and IMF may consider this request due to the unique circumstances.”

To stave off the crisis, Sri Lanka is asking for at least $3 billion from the IMF, the World Bank and India, said Sabry.

Last week, Sri Lanka’s central bank said it was suspending repayment on some of its foreign debt pending a restructure.

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