IMF confirms India’s assurances on Sri Lanka debt needed for bailout

Tuesday, 24 January 2023 - 11:36


India has committed to help ease the debt burden of its crisis-stricken neighbor Sri Lanka as part of a possible International Monetary Fund-supported program, the IMF said on Monday.

The island nation of 22 million people has grappled with challenges during the past year ranging from a shortage of foreign currency to runaway inflation and a steep recession - the worst such crisis since independence from Britain in 1948.

Reuters reported last week that India had told the IMF it strongly supports Sri Lanka’s debt restructuring plan as the island seeks a $2.9 billion loan from the global lender, according to a letter.

“Sri Lanka is engaged with other official bilateral creditors to obtain similar assurances,” an IMF spokesperson said in a statement on Monday.

“As soon as adequate assurances are obtained and remaining requirements are met, including by the Sri Lankan authorities, a Fund-supported program for Sri Lanka can be presented to the IMF’s Executive Board for approval that would unlock much needed financing.”

Sri Lanka requires the backing of China and India - its biggest bilateral lenders - to reach a final agreement with the IMF that is essential to help the country emerge from its worst financial crisis in seven decades. (Reuters)

8 Killed, 5 Injured In Shooting At Busy Nightclub In Mexico
Monday, 30 January 2023 - 12:36

Eight people died and five were injured in a shooting at a busy nightclub in the town of Jerez, in northern Mexico, police said Sunday.The incident in... Read More

22 yr old Man arrested for ATM fraud
Monday, 30 January 2023 - 12:27

A 22-year-old individual has been arrested over an ATM card fraud carried out in Kurunegala Town.The Police said the suspect is a resident of Kotikapala... Read More

Very heavy showers expected in parts of the island
Monday, 30 January 2023 - 12:21

The well-marked low pressure area over the southeast bay of Bengal is likely to move west northwestwards towards the eastern coast of Sri Lanka on 01st... Read More