Central Bank reluctant to receive IMF SDR facility

The Central Bank has no intention to seek International Monetary Fund’s Special Drawing Rights (SDR) facility of US$750 million -$800 million which is offered as member country’s quota - unique instrument without much commitment, Governor of the Central Bank Prof. W.D Lakshman reiterated on Thursday. 

Answering a question posed by the Business Times at the Virtual Media Conference on the monthly Monetary Policy Review, Prof. Lakshman noted that although SDR is a right of a member country Sri Lanka is not willing to continue with any IMF economic reform programmes. 

However in a public statement last week on receivables of foreign finding, he categorically stated that “those foreign inflows are in addition to the receipt of around $800 million under the IMF SDR allocation expected in August 2021”. 

Responding to a Business Times query via email on this government assurance, IMF Mission Chief Masahiro Nozaki reiterated on Friday July 2 that they have not received a formal  request for IMF lending from Sri Lanka recently, but stood ready to discuss options if requested. 

Clarifying this matter further on Thursday, Deputy Governor Mahinda Siriwardana said that the Central Bank has not made any formal request from the IMF for SDR facility of $ 750 million but there is an option for eligibility as a member country. (BS)