IMF and Sri Lanka are not scheduled to meet this year-IMF
2022.12.13 14:29
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IMF and Sri Lanka are not scheduled to meet this year-IMF
Budrigannews.com – Two people who are familiar with the situation stated that it is not likely that the executive board of the International Monetary Fund will formally approve Sri Lanka’s $2.9 billion bailout before the end of the year – a crucial step that is required for the troubled nation to receive funding.
Sri Lanka reached an IMF staff – level agreement in June to find a way out of its worst economic crisis in decades. The deal was subject to approval and required that Sri Lankan authorities implement the measures that had been agreed upon.
In September, Sri Lanka stated that the deal would likely be approved by the board by the end of the year. In recent months, progress has been sluggish, and the finance minister of Sri Lanka acknowledged last month that the request might be extended into January.
Before the global lender will disburse the funds, Sri Lanka must obtain prior financing assurances from creditors, reduce its high debt burden on a sustainable path, and increase public revenue. The IMF emphasized the significance of joint negotiations with China, Japan, and India, three of Sri Lanka’s primary bilateral creditors.
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Sri Lanka is not mentioned in the IMF’s online board calendar, which has added meetings through December 22 to discuss progress and new tranches for a number of emerging economies.
Sri Lanka’s finance ministry responded to an inquiry by stating that it was “100% focused” on obtaining IMF approval.
In an email statement, the ministry stated, “We are taking every necessary policy step to secure financing assurances from our bilateral creditors as quickly as possible.”
In October, Sri Lanka stated that one crucial step to obtaining IMF funding was to nearly double its tax revenue to approximately 15% of GDP by 2026 from the current 8.5 percent.
