IMF review for Sri Lanka delayed

• Central Bank Governor says uncertain on the timeline

The next review of the International Monetary Fund (IMF) will be delayed, the Central Bank confirmed on Friday.

As reported by Reuters, Central Bank Governor Dr. Nandalal Weerasinghe while acknowledging the delay, did not give a timeline on when it would happen. It is unclear if the review will take place before the end of 2024.

The fund said earlier this month after a visit to Colombo that it would continue to engage with Sri Lanka’s economic team to set a date for the third review.

Meanwhile, the Sri Lanka delegation that is in Washington DC had met with bondholders to discuss a debt exchange.

Dr. Weerasinghe shared that the talks, which happened on the sidelines of the IMF/World Bank meetings in Washington, aim to quickly get Sri Lanka “out of the default category.”

Citibank has been appointed as the dealer manager to oversee a consent solicitation, a key step in Sri Lanka’s path out of default. 

The island nation, which experienced its first-ever default in 2022 amid an economic crisis, reached a draft agreement with creditors in September to restructure US$ 12.5 billion in international bonds. Earlier this month, the International Monetary Fund and official bilateral creditors backed the proposal.