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Sri Lanka requests IMF for rapid financial aid amid economic crisis

Sri Lanka demands IMF for fast financial assistance amid recession

WASHINGTON/COLOMBO: Sri Lanka’s finance minister Ali Sabry has actually fulfilled IMF managing director Kristalina Georgieva in Washington and made a demand for a Fast Financing Instrument (RFI) in the middle of the unmatched economic crisis in the island country, a media report said on Tuesday.
The RFI, which is offered to all member countries of the International Monetary Fund (IMF), offers quick and low-access financial help to member nations dealing with an immediate balance of payments (BoP) need, without the need to have a full-fledged program in place.
Sri Lanka, which is on the edge of insolvency, is grappling with an unmatched economic turmoil, the worst because its independence from Britain in 1948.
Financing minister Sabry is here for the yearly spring meetings of the International Monetary Fund (IMF) and the World Bank.
He fulfilled IMF handling director Georgieva on Monday at the IMF headquarters here, News First Sri Lanka reported.
The IMF has applauded the actions already taken by the financing minister to mitigate today financial scenario in Sri Lanka, it said.
The IMF has actually also guaranteed their maximum assistance to Sri Lanka and a positive action has likewise been received to accelerate the procedure to reinforce the support extended towards Sri Lanka, the report stated.
Finance minister Sabry made an ask for an RFI with the IMF. The IMF notified Sabry that India had actually likewise made representations on behalf of Sri Lanka for an RFI, it said.
It had been communicated that the IMF will consider the special demand made despite it being beyond the standard scenarios for the issuance of an RFI, the report said.
As the island country is experiencing its worst economic crisis in history, massive anti-government protests are being held throughout the country against the government’s failure to take on the crisis.
With long lines for fuel, cooking gas, essentials in brief supply, and long hours of power cuts, the general public has been suffering for months.
With the financial crisis and the lack of forex, an Indian credit line of $500 million for fuel imports offered a lifeline to the island nation.
India recently revealed to extend a $1 billion line of credit to Sri Lanka as part of its monetary assistance to the country to handle the recession following a previous $500 billion credit line in February to assist it buy petroleum products.
President Gotabaya Rajapaksa has actually defended his government’s actions, stating the forex crisis was not his making and the financial recession was largely pandemic driven with the island country’s tourism earnings and inward remittances subsiding.

Released at Tue, 19 Apr 2022 10:16:55 +0000

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