While the government has not decided on a IMF bailout package as urged by economists and exporters to tide over a shortage of foreign exchange, the issue however has been discussed at a few government forums and high level meetings.
Non-Cabinet Minister of Finance Minister Ranjith Siyambalapitiya, Treasury Secretary Sumith Abeysinghe and Central Bank Governor Ajith Nivard Cabraal were among many high-level officials present at a recent meeting which discussed a range of options to tackle a balance of payment crisis and the budget deficit.
A senior government official, who declined to be named, said that the authorities are exploring the possibility of seeking assistance of international lending institutions like the IMF to overcome the current financial crisis. This matter along with the possibility of obtaining a short-term lending facility from the IMF and concessionary borrowings from foreign banks and financial institutions was discussed at this meeting.
It was emphasized that a structural adjustment facility is an urgent need at present to tackle the problem, The Sunday Times FT learns.
The official however noted that they have not approached the IMF as yet. The IMF provides short term lending facilities for countries that are facing some short term financial problems without any conditions, he added. Several other measures including the curtailing of imports and attracting more investments from Sri Lankans living in foreign countries have already been taken to replenish the country’s depleting foreign reserves.
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