IMF says will support Sri Lanka to overcome economic crisis

The International Monetary Fund (IMF) on Saturday said it will support Sri Lanka’s efforts to overcome the current economic crisis.

“Going forward, the IMF team will support Sri Lanka’s efforts to overcome the current economic crisis by working closely with the authorities on their economic program, and by engaging with all other stakeholders in support of a timely resolution of the crisis,” IMF mission chief for Sri Lanka Masahiro Nozaki said in a statement.

The announcement follows IMF Managing Director Kristalina Georgieva and other senior members of IMF management meeting with a Sri Lankan delegation, led by Finance Minister Ali Sabry and Central Bank of Sri Lanka Governor Nandalal Weerasinghe, and discussing policy actions to address economic challenges. 

The meeting was during the 2022 IMF and World Bank Spring Meetings in Washington D.C. and the statement said the IMF had fruitful technical discussions on the authorities’ request for an IMF-supported program.

“The discussions covered recent economic and financial developments in Sri Lanka, the need for implementing a credible and coherent strategy to restore macroeconomic stability, and the importance of stronger social safety nets to mitigate the adverse impact of the current economic crisis on the poor and vulnerable. The IMF team welcomed the authorities’ plan to engage in a collaborative dialogue with their creditors,” Nozaki added.

Finance Minister Sabry told journalists last Friday that Sri Lanka will be seeking IMF support via its Extended Fund Facility (EFF).