Sri Lanka may get relief from IMF repayments

Sunday, 22 February 2015 - 12:30

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Finance Minister Ravi Karunanayake said the International Monetary Fund has "favourably viewed" a request from Sri Lanka to defer repayments on an earlier loan as the island attempts to rebalance its debt servicing.

Karunanayake met IMF Managing Director Christine Lagarde this week and a mission boosted by its Asia Pacific Director Changyong Rhee is visiting Sri Lanka this week.

Sri Lanka's foreign reserves are estimated to have fallen by around 1.5 billion US dollars since August due to IMF repayments and also a pick-up in credit that was beginning to move unsterilized excess liquidity in the banking system, which would the hit the balance of payments.