President gives fresh hopes, says SL will secure IMF relief package soon

• Says IMF bailout will be obtained by March
• Indicates there is a ‘possibility’ of bank rates coming down
• Announcement comes just a day after hiking electricity tariffs by whopping 66% 
• Key officials virtually attend IMF’s first-ever Global Sovereign Debt Roundtable

President Ranil Wickremesinghe yesterday gave fresh hopes to the nation, as he shared that the answers to the woes faced by the people would be unlocked before the end of the first quarter of the year.  Whilst citizens are far from recovering from the jolt that was announced this week, the second electricity tariff hike, where the increase is a staggering 66 percent, Wickremesinghe shared the possibility of reduced challenges going forward, as assistance from the International Monetary Fund (IMF) will be obtained sooner than expected. 

Addressing a meeting at the Presidential Secretariat on Thursday, Wickremesinghe announced that the bailout package from the IMF can be expected in March this year.  

He went on to indicate that there is a possibility of bank interest rates coming down, as it is considered in line with the gradual drop of the inflation rate. 

According to the President’s Media Division, the announcement was made when the president was briefed on the issues affecting small and large-scale rice mill owners. 

Sri Lanka has received the required financial assurances from India and the Paris Club of Creditors but it is yet to receive an acceptable dent restructuring agenda from China that satisfies the requirements of the IMF. The IMF has repeatedly stressed that financial assurances from all creditors are vital for the bailout package to be released. 

Despite the slow development from China, the government maintains that it is in direct discussion with the creditor and that the outcomes are positive. Yet, a clear affirmation from that country on the island nation is to reach the IMF. 

The key officials of Sri Lanka yesterday virtually attended the first-ever Global Sovereign Debt Roundtable that is led by the IMF, World Bank, and India. In-person meetings will follow on February 25 on the sidelines of the G20 Finance Leaders Meeting in Bengaluru, India. 

The IMF shared that the roundtable does not intend to discuss country-specific debt restructuring issues but will address the broader impediments that have been delaying the rollout of the relief packages. 

Participants of the roundtable included officials from creditor countries such as China, India, Saudi Arabia, the United States and other wealthy G7 democracies.