Second round of talks with IMF begins | Daily News

Second round of talks with IMF begins

IMF remains committed to assist Sri Lanka

Sri Lankan Authorities commenced the second round of talks with the International Monetary Fund (IMF) yesterday (9) for an IMF-supported program (09), The IMF’s mission chief for Sri Lanka Masahiro Nozaki (pictured), has said.

Nozaki said that this discussion will happen virtually and will continue till May 23 and the discussions on the Sri Lankan authorities’ request for an IMF-supported program. The first round of talks was held during April 18–22 and the Sri Lankan delegation and the IMF team had fruitful technical discussions on the authorities’ request for an IMF-supported program. The discussions covered recent economic and financial developments in Sri Lanka, the need for implementing a credible and coherent strategy to restore macroeconomic stability, and the importance of stronger social safety nets to mitigate the adverse impact of the current economic crisis on the poor and vulnerable. The IMF team 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 overcome the current economic crisis by working closely with the authorities on their economic program, and by engaging with all other stakeholders in support of a timely resolution of the crisis.”

Issuing a statement, IMF further emphasized that the IMF remains committed to assisting Sri Lanka, in line with the organization’s policies. It also reiterated that due to Sri Lanka’s debt being assessed as unsustainable, approval of IMF financing, including through a Rapid Financing Instrument, would require adequate assurances that debt sustainability will be restored. The statement further emphasized that the IMF remains committed to assisting Sri Lanka, in line with the organization’s policies. For Sri Lanka, what was negotiated last week was the 17th programme. Sri Lanka’s total foreign debt was at $56 billion, which was 66% of the country’s GDP. The C-19 pandemic, sharp drop in tourism, escalating global commodity prices, depreciating of the rupee too played a role in devastating the economy. Tourism earned 10% of GDP and the earning reported was around $455 million a month in the earlier years. It shrank to $3 million in July 2021. Tea and agricultural exports too shrank precipitously.

 


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