IMF reviews Sri Lanka's request for ‘Rapid Credit Facility’  

The International Monetary Fund (IMF) is reviewing a request from the Sri Lankan Government regarding a Rapid Credit Facility and is discussing whether Sri Lanka wants to switch to the new Rapid Credit Facility, RCF programme.

“We received a letter from Sri Lanka government about our Rapid Credit Facility, you know, the programme, RCF programme,” said Changyong Rhee, the Director of the IMF’s Asia and Pacific Department.
“We are now starting to review it. And we are now discussing with the government whether they want to switch their previous programme into our new Rapid Facilities,” he said. 

Mr. Rhee stated that the IMF and the Sri Lankan government will be discussing the matter this week.

He stated this while responding to a question during the Asia and Pacific Department Press Briefing of the IMF. According to the IMF, the Rapid Credit Facility (RCF) provides rapid concessional financial assistance with limited conditionality to low-income countries (LICs) facing an urgent balance of payments need. 

Sri Lankan financial authorities will be holding discussions with the IMF team on the possibility of obtaining the final tranche of $190 million or to enter into a different co-operation arrangement in accordance with current economic policies, a senior government official said.

Responding to an email request for comments on the ongoing IMF’s Extended Fund Facility (EFF) Masahiro Nozaki, IMF’s acting mission chief for Sri Lanka informed last week the IMF’s willingness to provide a realistic option for the country’s economic recovery.
Sri Lanka and the IMF have a long history of close engagement. During the recent staff visit, the authorities expressed interest in a range of options for future engagement with the Fund, he disclosed.

The seventh and final review under the EFF arrangement was scheduled to take place after mid-April.

“However, given the forthcoming elections and the COVID-19 pandemic, it remains to be seen whether conditions will be in place with sufficient time left for a review to be concluded before the expiration of the arrangement in June,” he added.