IMF responds positively to Sri Lanka’s request for Rapid Financing Instrument facility

International Monetary Fund  (IMF) has assured fullest support to Sri Lanka to tackle the current economic crisis and a positive response has also been received to expedite the process to strengthen the support extended towards Sri Lanka, Finance Ministry said following a meeting with IMF top officials today. 

Minister of Finance M.U.M Ali Sabry P.C, met with the Managing Director of International Monetary Fund (IMF) Kristalina Georgieva on the 18th of April at IMF Headquarters in Washington DC. 

The IMF has commended the steps already taken by the Finance Minister to mitigate the financial situation in Sri Lanka, Ministry said in a statement.

Minister of Finance has made a request for a Rapid Financing Instrument (RFI) with the IMF and IMF has subsequently informed Minister Sabry that India had also made representations on behalf of Sri Lanka for an RFI. It had been communicated that IMF Will consider the special request made despite it being outside of the standard circumstances for the issuance of an RFI, the statement added.

The Finance Minister of India Nirmala Sitharaman and the top-level Indian Economic delegation met with Finance Minister Ali Sabry at the IMF Headquarters - in Washington DC yesterday.

“Ms. Sitharaman has assured Minister Ali Sabry of India’s fullest support to Sri Lanka to move forward and has emphasized India’s commitment to strengthening the development of the economy in Sri Lanka and building stronger bonds between the two Nations as they move forward together,” the statement added. 

The Finance Minister of India has also affirmed to Minister Ali Sabry that India will fully support the deliberations of Sri Lanka with the IMF, especially on the special request made for expediting an Extended Fund Facility. (EFF)

Further arrangements have been made to hold several more rounds of talks today. Secretary to the Treasury Mr. Mahinda Siriwardana and Governor of the Central Bank Dr. Nandalal Weerasinghe also participated in these meetings, the statement said.