Paris Club provides much-needed assurance IMF funds almost in Sri Lanka’s hands

• Daily Mirror first reported on announcement by Paris Club  

By Easwaran Rutnam   

The Paris Club Creditors have provided financing assurances  to support the International Monetary Fund’s approval of an Extended  Fund Facility for Sri Lanka, the President’s Media Division said.  Daily Mirror first reported on January 28 that the Paris Club will be making a key announcement soon.  

Accordingly, the Paris Club Creditors have now announced  their decision to provide financing assurances to support the approval  by the IMF Executive Board of the envisaged IMF programme for Sri Lanka,  which would allow to restore the country’s macroeconomic stability.   

The assurance was given following a meeting by Paris Club  members held on January 25, 2023, in the presence of representatives  from Hungary, Saudi Arabia, the Kuwait Fund for Arab Economic  Development and India, as well as from the International Monetary Fund  and the World Bank.   

They examined the macroeconomic and financial situation of  Sri Lanka, including its long-term debt sustainability, and the need for  a debt treatment by all bilateral creditors to both fill the financing  gap and to ensure Sri Lanka’s debt sustainability in line with the  proposed Extended Fund Facility.   

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