IMF agrees to consider SL’s request for rapid aid

Finance Minister Ali Sabry and Sri Lankan delegation meeting Indian Finance Minister N. Sitharaman and a top level Indian economic delegation at IMF Headquarters in Washington

• IMF says will consider request for RFI even though outside the standard of circumstances
• Commends SL for the steps already taken in the direction of resolving economic crisis
• India makes representations on behalf of SL for RFI
• Indian Finance Minister and top level economic delegation meets with Sabry and Lankan delegation
• India assures fullest support to SL in deliberations with IMF, especially for Extended Fund Facility

Sri Lanka’s request for a Rapid Financing Instrument (RFI) from the International Monetary Fund (IMF) has received a positive response form the multilateral agency, a Finance Ministry communiqué said.

Finance Minister Ali Sabry made the special request during his meeting with the IMF Managing Kristalina Georgieva on Monday (18) at the IMF Headquarters in Washington D.C. While India has also made representations on behalf of Sri Lanka for a RFI, the IMF has communicated that it will consider the request made despite it being outside the standard of circumstances for the issuance of an RFI, the Finance Ministry said in a press statement yesterday.

According to the statement, the IMF has commended the steps already taken by the Finance Ministry to resolve the economic crisis in Sri Lanka. The IMF has assured its fullest support to Sri Lanka and a positive response has also been received to expedite the process to strengthen the support extended towards Sri Lanka, the Finance Ministry said.

Sri Lanka has been promised that it will receive the fullest support from India to brave through the ongoing economic crisis. Meeting with Finance Minister Sabry at the IMF Headquarters was also the Finance Minister of India Nirmala Sitharaman and a top level Indian Economic delegation.

According to the statement released by the Finance Ministry, Minister Sitharaman stressed India remains committed to strengthening the development of the Sri Lankan economy and building stronger bonds between the two nations as they move forward together. 

The Indian Finance Minister also affirmed to Minister Sabry that India will fully support the deliberations of Sri Lanka with the IMF especially on the special request made for expediting an Extended Fund Facility (EFF). After the initial meeting with the Fund on Monday, arrangements were also made to hold several more rounds yesterday.  Present at the meetings were also newly appointed Treasury Secretary Mahinda Siriwardana and Central Bank Governor Dr. Nandalal Weerasinghe.