Colombo, April 19 (BNA) Sri Lanka has requested rapid financial assistance from the International Monetary Fund, and the World Bank may consider it after initially hesitating, an assistant state finance minister said on Tuesday.
The protests have erupted in the island nation as it battles a devastating financial crisis caused by the effects of COVID-19, mismanagement of government finances and high fuel prices that have drained foreign reserves.
A delegation led by Sri Lankan Finance Minister Ali Sabri began formal talks with the International Monetary Fund in Washington on Monday for a program the government hopes will help increase its reserves and attract bridge funding to pay for essential imports of fuel, food and medicine.
“(Foreign Minister) applied for a Rapid Financing Instrument (RFI) to mitigate current supply chain issues, but the IMF initially saw it as not meeting its criteria,” Shamir Zafahar, Sabri’s aide, said on Twitter.
“However, India later provided assurances on the (Sri Lanka) RFI as well, and the IMF may consider this request given the unique circumstances.”
Sabri told Reuters earlier this month that Sri Lanka is seeking $3 billion in the coming months from multiple sources including the International Monetary Fund, the World Bank and India to avert the crisis.
Last week, the country’s central bank said it had suspended the repayment of some of its foreign debt pending restructuring.
In the commercial capital Colombo, protests demanding the ouster of President Gotabaya Rajapaksa have continued for more than a week.
FKN