Sri Lanka requests emergency financial help from IMF

Sri Lanka has requested emergency financial help from the International Monetary Fund (IMF) as officials battle to save the island nation from economic troubles that have snowballed into a deepening political crisis.  Meanwhile, a leading rating agency warned that Sri Lanka will see a series of defaults on its foreign debts after officials said, it would halt payments. Sri Lankan officials, led by Finance Minister Ali Sabry, are in Washington this week for talks with the IMF as the South Asian nation faces its worst economic crisis in more than 70 years.  At a meeting, the IMF commended the steps already taken by Sabry to mitigate the financial situation in Sri Lanka, the country's Finance Ministry said in a statement. The global financial organization will consider providing assistance.

Negotiations with IMF started on a positive note today.They see the recent steps taken to increase the interest rates and calling for RfP’s for the appointment of Intl. Financial/Legal Advisors as good first steps towards a possible restructuring Programme. FM made a

— Shamir Zavahir (@ShamirZavahir) April 19, 2022

   
The Finance Minister has made a request for a Rapid Financing Instrument (RFI) with the IMF.The global agency IMF has subsequently informed Minister Sabry that India had also made representations on behalf of Sri Lanka for an RFI, it added. Sri Lanka is seeking up to $4 billion this year to tide over problems and pay creditors amid dwindling foreign reserves and Asia’s fastest inflation.